10-Q

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

x Quarterly Report Pursuant to Section 13 or 15(d) Securities Exchange Act of 1934 for Quarterly Period Ended September 30, 2017

-OR-

¨ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transaction period from _________ to ________

Commission File Number 001-37865

Reven Housing REIT, Inc.

(Exact name of Registrant in its charter)

Maryland	84-1306078
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification Number)

875 Prospect Street, Suite 304

La Jolla, CA 92037

(Address of principal executive offices)

Registrant's Telephone Number, Including Area Code: (858) 459-4000

Not Applicable

(Former name or former address, if changed since last report)

Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerate filer, a small reporting company or an emerging growth company as defined by Rule 12b-2 of the Exchange Act):

Large accelerated filer	¨	Non-accelerated filer	¨
Accelerated filer	¨	Smaller reporting company	x
		Emerging growth company	¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

The number of outstanding shares of the registrant's common stock, as of October 31, 2017: 10,734,025

REVEN HOUSING REIT, INC.

FORM 10-Q

INDEX

PART I – FINANCIAL INFORMATION

	Page
Item 1.  Financial Statements (Unaudited)	1
Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations	12
Item 3.  Quantitative and Qualitative Disclosure About Market Risk	20
Item 4.  Controls and Procedures	20

PART II - OTHER INFORMATION

Item 6.  Exhibits	21
SIGNATURES	22

FORWARD-LOOKING STATEMENTS

Various statements contained in this Quarterly Report on Form 10-Q of Reven Housing REIT, Inc. (the “Company,” “we,” “our” and “us”), including those that express a belief, expectation or intention, as well as those that are not statements of historical fact, are forward-looking statements. These forward-looking statements may include, but are not limited to, statements related to our expectations regarding the performance of our business, our financial results, our liquidity and capital resources, and other non-historical statements. In some cases, you can identify these forward-looking statements by the use of words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "projects," "predicts," "intends," "plans," "estimates," "anticipates" or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks and uncertainties, including, among others, risks inherent to the single-family rental industry sector and our business model, macroeconomic factors beyond our control, competition in identifying and acquiring our properties, competition in the leasing market for quality residents, increasing property taxes, homeowners’ association (“HOA”) and insurance costs, our dependence on third parties for key services, risks related to evaluation of properties, poor resident selection and defaults and non-renewals by our residents, performance of our information technology systems, our ability to raise the capital required to acquire additional properties, and risks related to our indebtedness. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. We believe these factors include but are not limited to those described under Part I. Item 1A. “Risk Factors," in our Annual Report on Form 10-K for the year ended December 31, 2016 as such factors may be updated from time to time in our periodic filings with the Securities and Exchange Commission. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in the Annual Report on Form 10-K and in our other periodic filings. The forward-looking statements speak only as of the date made, and we expressly disclaim any obligation or undertaking to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except to the extent otherwise required by law.

PART I--FINANCIAL INFORMATION

Item 1. Financial Statements.

1

REVEN HOUSING REIT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

September 30, 2017 and December 31, 2016

	2017
	(unaudited)			2016
ASSETS
Investments in single-family residential properties:
Land	$	10,429,647		$	8,579,550
Buildings and improvements		45,612,136			39,419,038
		56,041,783			47,998,588
Accumulated depreciation		(4,114,171	)		(2,853,049	)
Investments in single-family residential properties, net		51,927,612			45,145,539
Cash		6,980,464			10,044,977
Rent and other receivables		674,086			246,378
Escrow deposits		32,390			105,500
Lease origination costs, net		363,873			329,395
Deferred stock issuance costs		556,604			-
Other assets, net		1,338,868			195,020
Total Assets	$	61,873,897		$	56,066,809
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities	$	1,475,643		$	1,283,235
Resident security deposits		679,409			552,698
Notes payable, net		26,904,604			19,454,377
Total Liabilities		29,059,656			21,290,310
Commitments and contingencies (Note 9)
Stockholders' Equity
Preferred stock, $.001 par value; 25,000,000 shares authorized;
No shares issued or outstanding		-			-
Common stock, $.001 par value; 100,000,000 shares authorized;
10,734,025 shares issued and outstanding at September 30, 2017
and December 31, 2016, respectively		10,734			10,734
Additional paid-in capital		41,677,465			41,677,465
Accumulated deficit		(8,873,958	)		(6,911,700	)
Total Stockholders' Equity		32,814,241			34,776,499
Total Liabilities and Stockholders' Equity	$	61,873,897		$	56,066,809

The accompanying notes are an integral part of these consolidated financial statements.

2

REVEN HOUSING REIT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

For the Three and Nine Months Ended September 30, 2017 and 2016

	Three Months			Three Months			Nine Months			Nine Months
	Ended			Ended			Ended			Ended
	September 30,			September 30,			September 30,			September 30,
	2017			2016			2017			2016
Revenue:
Rental income	$	2,043,322		$	1,381,080		$	5,814,135		$	4,153,979
Expenses:
Property operating and maintenance		593,339			406,475			1,694,969			1,207,217
Real estate taxes		346,669			230,165			988,839			658,256
Depreciation and amortization		537,968			326,029			1,458,933			964,953
General and administration		558,074			486,379			1,860,473			1,466,865
Noncash share-based compensation		-			425,000			-			425,000
Acquisition costs		-			18,265			-			76,129
Total expenses		2,036,050			1,892,313			6,003,214			4,798,420
Operating income (loss)		7,272			(511,233	)		(189,079	)		(644,441	)
Other income (expenses):
Casualty loss, net		(978,181	)		-			(895,194	)		-
Gain on sale of residential property, net		-			-			75,796			-
Other		5,466			496			13,628			805
Interest expense		(342,253	)		(260,506	)		(967,410	)		(775,849	)
Total other income (expenses), net		(1,314,968	)		(260,010	)		(1,773,180	)		(775,044	)
Net loss	$	(1,307,696	)	$	(771,243	)	$	(1,962,259	)	$	(1,419,485	)
Net loss per share
(Basic and fully diluted)	$	(0.12	)	$	(0.09	)	$	(0.18	)	$	(0.19	)
Weighted average number of common shares outstanding		10,734,025			8,245,013			10,734,025			7,441,650

The accompanying notes are an integral part of these consolidated financial statements.

3

REVEN HOUSING REIT, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

For the Nine Months Ended September 30, 2017 and 2016

	2017			2016
Cash Flows From Operating Activities:
Net loss	$	(1,962,259	)	$	(1,419,485	)
Adjustments to reconcile net loss to net cash provided by
(used in) operating activities:
Depreciation and amortization		1,458,933			964,953
Noncash share-based compensation		-			425,000
Amortization of deferred loan fees		108,117			90,981
Casualty loss, net		895,194			-
Gain on sale of residential properties, net		(75,796	)		-
Changes in operating assets and liabilities:
Rent and other receivables		(427,708	)		(5,872	)
Other assets		6,152			(44,734	)
Accounts payable and accrued liabilities		192,408			(99,689	)
Resident security deposits		126,711			3,925
Net cash provided by (used in) operating activities		321,752			(84,921	)
Cash Flows From Investing Activities:
Acquisitions of single-family residential properties		(10,117,039	)		-
Capital improvements for single-family residential properties		(668,268	)		(364,823	)
Proceeds from disposition of single-family residential property		205,027			-
Insurance proceeds received for property damages		554,806			-
Lease origination costs		(219,407	)		(76,080	)
Escrow deposits		73,110			51,401
Net cash used in investing activities		(10,171,771	)		(389,502	)
Cash Flows From Financing Activities:
Proceeds from issuance of shares		-			15,415,100
Proceeds from note payable		7,968,633			-
Payments of notes payable		(405,750	)		(27,056	)
Payment of loan fees		(220,773	)		-
Payments of deferred stock issuance costs		(556,604	)		(971,716	)
Net cash provided by financing activities		6,785,506			14,416,328
Net (Decrease) Increase In Cash		(3,064,513	)		13,941,905
Cash at the Beginning of the Period		10,044,977			2,140,298
Cash at the End of the Period	$	6,980,464		$	16,082,203
Supplemental Disclosure:
Cash paid for interest	$	837,127		$	685,544

The accompanying notes are an integral part of these consolidated financial statements.

4

REVEN HOUSING REIT, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

September 30, 2017 and 2016

NOTE 1. ORGANIZATION AND OPERATION

Reven Housing REIT, Inc. is a Maryland corporation (Reven Housing REIT, Inc., which along with its wholly-owned subsidiaries, are also referred to herein collectively as the “Company”) which acquires portfolios of occupied and rented single-family residential properties throughout the United States with the objective of receiving income from rental property activity and future profits from the sale of rental property at appreciated values.

As of September 30, 2017, the Company owned 755 single-family homes located in the Houston, Jacksonville, Memphis, Birmingham, and Atlanta metropolitan areas.

NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”), as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”), and the rules and regulations of the Securities Exchange Commission (“SEC”).

Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the 2016 Annual Report on Form 10-K filed with the SEC on March 24, 2017. The results of operations for the period ended September 30, 2017 are not necessarily indicative of the operating results for the full year.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Reven Housing REIT OP, L.P., Reven Housing GP, LLC, Reven Housing REIT TRS, LLC, Reven Housing Georgia, LLC, Reven Housing Texas, LLC, Reven Housing Texas 2, LLC, Reven Housing Florida, LLC, Reven Housing Florida 2, LLC, Reven Housing Alabama, LLC and Reven Housing Tennessee, LLC. All significant intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet dates and reported amounts of revenues and expenses for the periods presented. Accordingly, actual results could differ from those estimates.

Financial Instruments

The carrying value of the Company’s financial instruments, as reported in the accompanying consolidated balance sheets, approximates fair value due to their short term nature. The Company’s short term financial instruments consist of cash, rents and other receivables, escrow deposits, accounts payable and accrued liabilities, and resident security deposits.

The carrying value of the Company’s notes payable, as reported in the accompanying consolidated balance sheets, approximates fair value due to the fact that their interest rate, security, and payment terms are similar to other debt instruments currently being issued.

5

REVEN HOUSING REIT, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

September 30, 2017 and 2016

NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)

Investments in Single-Family Residential Properties

Prior to January 1, 2017, the Company accounted for its investments in single-family residential properties as business combinations under the guidance of ASC Topic 805, Business Combinations (“ASC 805”) and these acquisitions were recorded at their estimated fair value. The purchase price was allocated to land, building and the existing leases based upon their fair values at the date of acquisition, with acquisition costs expensed as incurred.

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which changed the definition of a business and now requires management to determine whether substantially all of the fair value of gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. When this is the case, the transferred assets and activities are not considered to be a business. This determination is important as the accounting treatment for business combinations and asset acquisitions differs since transactions costs are expensed in a business combination and capitalized in an asset acquisition. The guidance is effective for public companies for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods, with early adoption permitted. The Company adopted this guidance as of January 1, 2017, on a prospective basis, which results in our leased properties no longer meeting the definition of a business. Based on this guidance, our current 2017 acquisitions are treated as asset acquisitions and are recorded at their purchase price, and the purchase price is allocated between land, building, improvements and existing leases based upon their relative fair values at the date of acquisition. The purchase price for purposes of this allocation is inclusive of acquisition costs which typically include legal fees, title fees, property inspection and valuation fees, as well as other closing costs.

Building improvements and buildings are depreciated over estimated useful lives of approximately 10 to 27.5 years, respectively, using the straight-line method. Lease origination costs are amortized over the average remaining term of the in-place leases which is generally less than one year. Maintenance and repair costs are charged to expenses as incurred.

The Company assesses its investments in single-family residential properties for impairment whenever events or changes in business circumstances indicate that carrying amounts of the assets may not be fully recoverable. When such events occur, management determines whether there has been impairment by comparing the asset’s carrying value with its fair value. Should impairment exist, the asset is written down to its estimated fair value. The Company did not recognize any impairment losses for the nine months ended September 30, 2017 and 2016.

Cash

The Company maintains its cash at quality financial institutions. The combined account balances at one or more institutions typically exceed the federal insurance coverage and thus there is a concentration of credit risk related to amounts on deposit in excess of available federal insurance coverage. The Company believes that the risk is not significant, as the Company does not anticipate the financial institutions’ non-performance.

Rents and Other Receivables

Rents and other receivables primarily represent the amount of security deposits and net rental funds which are held by the property managers on behalf of the Company.

Escrow Deposits

Escrow deposits include refundable and non-refundable cash and earnest money on deposit with third parties for future property purchases. However, not all of these properties are certain to be acquired because properties may fall out of escrow through the closing process for various reasons.

Deferred Loan Fees

Costs incurred in the placement of the Company’s notes payable are deferred and amortized using the effective interest method over the term of the respective notes as a component of interest expense on the consolidated statements of operations and presented as an offset to notes payable on the consolidated balance sheets.

6

REVEN HOUSING REIT, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

September 30, 2017 and 2016

NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)

Deferred Stock Issuance Costs

Deferred stock issuance costs represent amounts paid for legal, consulting, and other offering expenses in conjunction with the future raising of additional capital to be completed. These costs are netted against additional paid-in capital as a cost of the stock issuance upon closing of the respective stock placement.

Resident Security Deposits

Resident security deposits represent amounts deposited by tenants at the inception of the lease. As of September 30, 2017 and December 31, 2016, the Company had $679,409 and $552,698, respectively, in resident security deposits. Security deposits are refundable, net of any outstanding charges and fees, upon expiration of the underlying lease.

Revenue Recognition

Residential properties are leased to tenants under short term rental agreements of generally one year and revenue is recognized over the lease term on a straight-line basis.

Reclassifications

The Company has reclassified certain prior period amounts to conform to the current period’s presentation.

Income Taxes

The Company intends to elect to be taxed as a real estate investment trust (“REIT”), as defined in the Internal Revenue Code, commencing for the year ending December 31, 2017. Accordingly, the Company does not expect to be subject to federal income tax, provided that it continues to qualify as a REIT and distributions to the stockholders equal or exceed REIT taxable income.

Qualification and taxation as a REIT depends upon the Company’s ability to meet the various qualification tests imposed under the Internal Revenue Code related to the percentage of income that are earned from specified sources, the percentage of assets that fall within specified categories, the diversity of capital stock ownership, and the percentage of earnings that are distributed. Accordingly, no assurance can be given that the Company will be organized or be able to operate in a manner to qualify or remain qualified as a REIT. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal and state income tax (including any applicable alternative minimum tax) on its taxable income at regular corporate tax rates, and the Company may be ineligible to qualify as a REIT for four subsequent tax years. Even if the Company qualifies as a REIT, it may be subject to certain state or local income taxes.

Incentive Compensation Plan

During 2012, the Company established the 2012 Incentive Compensation Plan, which was subsequently amended and restated in December 2013 (“2012 Plan”). The 2012 Plan allows for the grant of options and other awards representing up to 1,650,000 shares of the Company’s common stock. Such awards may be granted to officers, directors, employees, consultants and other persons who provide services to the Company or any related entity. Under the 2012 Plan, options may be granted at an exercise price greater than or equal to the market value at the date of the grant, for owners of 10% or more of the voting shares, at an exercise price of not less than 110% of the market value. Awards are exercisable over a period of time as determined by a committee designated by the Board of Directors, but in no event, longer than ten years.

A total of 496,359 shares have been issued under the 2012 plan as of September 30, 2017.

Net Loss Per Share

Net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company's preferred stock (if any) are not included in the computation if the effect would be anti-dilutive and would increase earnings or decrease loss per share. For the nine months ended September 30, 2017 and 2016, potentially dilutive securities excluded from the calculations were 263,588 shares issuable upon exercise of outstanding warrants granted in prior years.

7

REVEN HOUSING REIT, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

September 30, 2017 and 2016

NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (continued)

New Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02, Leases, a new lease standard which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). Under ASU 2016-02, lessor accounting will be substantially similar to the current model, but aligned with certain changes to the lessee model and ASU 2014-09. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The Company’s rental revenue is primarily generated from short-term operating leases. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard is expected to impact the Company’s consolidated financial statements as the Company has an operating office lease arrangement for which it is the lessee. The new standard will be effective for the Company beginning on January 1, 2019, with early adoption permitted. The new standard must be adopted using a modified retrospective transition, requiring application of the new guidance at the beginning of the earliest comparative period presented and provides for certain practical expedients. The Company is currently evaluating the impact on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. The amendments in this ASU include multiple provisions intended to simplify various aspects of the accounting for share-based payments. The guidance will be effective for annual reporting periods beginning after December 15, 2016, and for interim reporting periods within those annual periods, with early adoption permitted. The Company adopted this ASU effective January 1, 2017 and the adoption did not have a material impact on the Company’s consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments, which clarifies how certain cash receipts and cash payments should be presented and classified on the statement of cash flows. The guidance will be effective for annual periods beginning after December 15, 2017 and interim periods within that reporting period. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows, Restricted Cash, which requires the statement of cash flows to explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Thus, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments do not provide a definition of restricted cash or restricted cash equivalents. The guidance will be effective for annual periods beginning after December 15, 2017 and interim periods within that reporting period. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements.

8

REVEN HOUSING REIT, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

September 30, 2017 and 2016

NOTE 3. INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES

The following table summarizes the Company’s investments in single-family residential properties. The homes are generally leased to individual tenants under leases with terms of one year or less.

										Investments in
										Single-Family
										Residential
	Number of Homes			Land			Buildings and Improvements			Properties, Gross
Total at December 31, 2016		624		$	8,579,550		$	39,419,038		$	47,998,588
Acquisitions		133			1,873,650			8,243,389			10,117,039
Improvements		-			-			668,268			668,268
Sales		(2	)		(23,553	)		(118,559	)		(142,112	)
Loss due to property damage		-			-			(2,600,000	)		(2,600,000	)
Total at September 30, 2017		755		$	10,429,647		$	45,612,136		$	56,041,783

Hurricane Harvey and Hurricane Irma

During the quarter ended September 30, 2017, a significant number of the Company’s properties in Houston, TX and Jacksonville, FL incurred storm related damages from Hurricane Harvey and Hurricane Irma. The Company has estimated the damages to the properties to be approximately $2.6 million and has reduced its carrying value of its homes by that amount. The Company has estimated that approximately $1,650,000 of the damages will be reimbursed in accordance with the Company’s insurance policies. The remaining $950,000 of repair costs represents amounts that will be paid by the Company from its available cash balances and are due to applicable deductible costs and uninsured costs. This amount has been included in casualty losses, net in the statement of operations and has been combined with the results from other minor pre-storm casualty gains and losses.

The Company received approximately $500,000 for Hurricane Harvey and Hurricane Irma related damages from its insurers during the period ended September 30, 2017 and the remaining $1,150,000 expected to be recovered has been included in other assets.

The Company is actively repairing all of its damaged homes in both Houston, TX and Jacksonville, FL and anticipates that all properties will be restored to their original operating condition or better.

NOTE 4. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

At September 30, 2017 and December 31, 2016, accounts payable and accrued liabilities consisted of the following:

	2017		2016
Accounts payable	$	107,459	$	248,456
Real estate taxes payable		898,590		667,811
Accrued compensation, board fees and other		380,960		300,500
Interest payable		88,634		66,468
	$	1,475,643	$	1,283,235

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REVEN HOUSING REIT, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

September 30, 2017 and 2016

NOTE 5. NOTES PAYABLE

On January 31, 2017, Reven Housing Texas 2, LLC, a wholly-owned subsidiary of the Company, received loan proceeds and issued a promissory note in the principal amount of $5,020,000 to a regional bank secured by 97 of the Company’s homes located in Texas. Principal and accrued interest are payable in sixty consecutive monthly installments of $31,759 on the first day of the month until January 31, 2022 when the entire amount of principal and interest remaining unpaid will be payable. Interest accrues and is payable monthly on the loan at the rate equal to four and one-half percent (4.50%) per annum until maturity.

On April 4, 2017, the Company entered into loan modification agreements with the regional bank on four notes mentioned in the summary below whereby the interest rate on all four loans was modified from a rate of 1% over the prime rate to a fixed rate of 4.5% per annum. Principal and interest payments will be made monthly based on a 25 year amortization period with the remaining unpaid principal on all four loans due on April 5, 2020. The loans have a prepayment penalty of 2% during the first year and 1% during the following year on amounts paid in excess of the scheduled amortization. The loans are secured by deeds of trust encumbering homes in each specified area.

On August 1, 2017, Reven Housing Georgia, LLC, a wholly owned subsidiary of the Company, received loan proceeds and issued a promissory note in the principal amount of $1,793,633 to a regional bank secured by the Company’s homes located in Georgia. Interest accrues at a fixed rate of 4.5% and monthly principal and interest payments will be made based on a 25-year amortization period with the remaining unpaid principal due July 5, 2020.

On August 22, 2017, Reven Housing Tennessee, LLC, a wholly owned subsidiary of the Company, received loan proceeds and issued an additional promissory note in the principal amount of $1,155,000 to a regional bank secured by 28 of the Company’s homes located in Tennessee. Interest accrues at a fixed rate of 4.5% and monthly principal and interest payments will be made based on a 25-year amortization period with the remaining unpaid principal due September 5, 2020.

A summary of the Company’s notes payable as of September 30, 2017 and December 31, 2016 is as follows:

	2017			2016			Interest Rate	Maturity Date
Note
Reven Housing Texas, LLC	$	7,353,791		$	7,502,504		4.50%	April, 2020
Reven Housing Texas 2, LLC		4,930,318			-		4.50%	Jan, 2022
Reven Housing Tennessee, LLC		3,852,432			3,908,829		4.50%	April, 2020
Reven Housing Florida, LLC		3,462,437			3,526,794		4.50%	April, 2020
Reven Housing Florida 2, LLC		4,832,383			4,875,898		4.50%	April, 2020
Reven Housing Georgia, LLC		1,790,547			-		4.50%	July, 2020
Reven Housing Tennessee, LLC		1,155,000			-		4.50%	Sept, 2020
		27,376,908			19,814,025
Less deferred loan fees, net		(472,304	)		(359,648	)
Notes payable, net	$	26,904,604		$	19,454,377

Costs incurred in the placement of the Company’s debt are deferred and amortized using the effective interest method over the term of the loans as a component of interest expense on the consolidated statements of operations. The amount of unamortized fees are deducted from the remaining principal amount owed on the corresponding notes payable. Unamortized deferred loan costs and fees totaled $472,304 and $359,648 as of September 30, 2017 and December 31, 2016, respectively.

During the three months ended September 30, 2017 and 2016, the Company incurred $342,253 and $260,506, respectively, of interest expense related to the notes payable, which includes $39,998 and $30,327, respectively, of amortization of deferred loan fees. During the nine months ended September 30, 2017 and 2016, the Company incurred $967,410 and $775,849, respectively, of interest expense related to the notes payable, which includes $108,117 and $90,981, respectively, of amortization of deferred loan fees.

10

REVEN HOUSING REIT, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (unaudited)

September 30, 2017 and 2016

NOTE 6. STOCKHOLDERS’ EQUITY AND STOCK COMPENSATION

On October 16, 2014, the Company issued 425,000 shares of the Company’s common stock under the 2012 Plan to certain officers and consultants of the Company. The shares issued are subject to restrictions and future vesting conditions based on the Company reaching certain future milestones. During the year ended December 31, 2016, 106,250 of these shares became vested upon the achievement of certain milestones related to our public offering of common stock in 2016. None of the remaining 318,750 shares were vested as of the issuance date. Compensation expense will be recognized in the applicable future periods on these unvested shares should the applicable milestones be achieved in accordance with the vesting schedule. There is no assurance that these milestones will in fact be achieved and that the shares will in fact vest in the future.

The Company has outstanding warrants that allow holders to purchase up to 263,588 shares at an exercise price of $4.00 per share.  The warrants will expire on September 27, 2018, if not exercised prior to that date.

NOTE 7. INCOME TAXES

The Company intends to elect REIT status effective for the year ended December 31, 2017. The Company is generally not subject to income taxes assuming it complies with the specific rules applicable to REITs.

NOTE 8. RELATED PARTY TRANSACTIONS

The Company sub-leased office space on a month-to-month basis from Reven Capital, LLC, which is wholly-owned by Chad M. Carpenter, a shareholder of the Company and its Chief Executive Officer, through January 31, 2016. This arrangement was terminated upon the Company relocating its office space and signing a new lease agreement with an unrelated party. Reven Capital, LLC currently subleases office space from the Company on a month to month basis for a monthly rental of $500.

NOTE 9. COMMITMENTS AND CONTINGENCIES

Legal and Regulatory

The Company is subject to potential liability under laws and government regulations and various claims and legal actions arising in the ordinary course of the Company’s business. Liabilities are established for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher or lower than the amounts established for those claims. Based on information currently available, management is not aware of any legal or regulatory claims that would have a material effect on the Company’s consolidated financial statements and, therefore, no accrual has been recorded as of the periods ended September 30, 2017 and 2016.

11

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the information appearing elsewhere in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2016. This discussion and analysis contains forward-looking statements based upon our current expectations that involve risks and uncertainties. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set further under Part I. Item 1A. “Risk Factors” in our most recent Annual Report on Form 10-K as updated by our other periodic reporting.

Overview

We are an internally managed Maryland corporation that engages in the acquisition, ownership and operation of portfolios of leased single-family homes in the United States. We operate our portfolio properties as single family rentals, or SFRs, and we generate most of our revenue from rental income from the existing tenants of the SFRs we have acquired. We intend to elect to be taxed as a real estate investment trust, or REIT, for federal income tax purposes commencing with our taxable year ended December 31, 2017.

As of September 30, 2017, we have invested an aggregate of approximately $56.0 million and own a total of 755 homes, of which 264 homes are in the Houston, Texas metropolitan area, 255 homes are in the Jacksonville, Florida metropolitan area, 120 homes are in the Memphis, Tennessee metropolitan area (with two of the Memphis homes located just across the border in Mississippi), 69 homes are in the Birmingham, Alabama metropolitan area, and 47 homes are in the Atlanta, Georgia metropolitan area.

We intend to expand our acquisitions to other select markets in the United States that fit our investment criteria as we continue to evaluate new investment opportunities in different markets. As of September 30, 2017, our portfolio properties were 93.9% occupied. All of our portfolio properties have been acquired from available cash and with the proceeds from our secured loan transactions with banks pursuant to which we had an outstanding principal amount owed of approximately $27.4 million as of September 30, 2017. Our loan transactions are secured by first priority liens and related rents on specific portfolios of our homes.

Our principal objective is to generate cash flow and distribute resulting profits to our stockholders in the form of distributions, while gaining home price appreciation, or HPA, at the same time through the ownership of our portfolio properties. With this objective in mind, we have developed our primary business strategy of acquiring portfolios of leased SFRs. We believe the execution of this strategy will allow us to generate immediate and steady cash flow from the rental income from the SFRs that we acquire while potentially gaining significant HPA over time. While our goal is to grow our company and generate available cash flow from the rental income of our SFRs that will allow us to pay all of our operating costs for the operation of our portfolio properties and distribute profits to our stockholders in the form of quarterly dividends, there can be no assurance we will be able to do so.

We plan to continue to acquire and manage single-family homes with a focus on long term earnings growth and appreciation in asset value. Our ability to identify and acquire single-family properties that meet our investment criteria will be affected by home prices in our markets, the inventory of properties available through our acquisition channels, competition for our target assets, our capital available for investment, and the cost of that capital. We believe the housing market environment in our markets remains attractive for single-family property acquisitions and rentals. Pricing for housing in certain markets remains attractive and demand for housing is growing. At the same time, we continue to face relatively steady competition for new properties and residents from local operators and institutional managers. Housing prices across our markets have appreciated over the past year. Despite these gains, we believe housing in certain of our markets continues to provide attractive acquisition opportunities and remains inexpensive relative to replacement cost and affordability metrics.

We anticipate continued strong rental demand for single-family homes. While new building activity has begun to increase, it remains below historical averages and we believe substantial under-investment in residential housing over the past years will create upward pressure on home prices and rents as demand exceeds supply.

Hurricane Harvey and Hurricane Irma

During the quarter ended September 30, 2017, a significant number of our properties in Houston and Jacksonville incurred storm related damages from Hurricane Harvey and Hurricane Irma. We have estimated our storm related damages to be approximately $2,600,000. The amount that is expected to be reimbursed under the terms of our insurance policies is estimated to be approximately $1,650,000. The remaining $950,000 of repair costs represents amounts we will fund from our available cash balances and are due to applicable deductible costs and uninsured costs relating to the storms. This amount has been included in casualty losses, net, in our accompanying statement of operations.

The Company is actively repairing its damaged homes in both Houston and Jacksonville and anticipates that all properties will be restored to their original operating condition or better.

12

Property Portfolio

The following tables represent our investment in the homes as of September 30, 2017:

Total Portfolio of Single-Family Homes — Summary Statistics
(as of September 30, 2017)
Market	No. of Homes	Aggregate Investment		Average Investment per Home		Properties Leased	Properties Vacant	Portfolio Occupancy Rate	Average Age (years)	Average Size (sq. ft.)	Average Monthly Rent		Average Remaining Lease Term (Months)
Atlanta, Georgia	47	$	3,393,629	$	72,205	44	3	93.6%	29	1,453	$	897	3.8
Birmingham, Alabama	69		5,344,358		77,454	68	1	98.6%	48	1,293		869	4.2
Houston, Texas	264		20,968,489		79,426	250	14	94.7%	48	1,453		1,100	3.7
Jacksonville, Florida	255		16,759,643		65,724	235	20	92.2%	54	1,289		908	7.2
Memphis, Tennesee	120		9,575,664		79,797	112	8	93.3%	43	1,675		997	10.1
Totals	755	$	56,041,783	$	74,228	709	46	93.9%	48	1,418	$	985	5.9

Results of Operations

Three Months Ended September 30, 2017 Compared to Three Months Ended September 30, 2016

The following table sets forth a comparison of the results of operations for the three months ended September 30, 2017 and 2016:

							$			%
	2017			2016			Change			Change
Revenue:
Rental income	$	2,043,322		$	1,381,080		$	662,242			48.0	%
Expenses:
Property operating and maintenance		593,339			406,475			186,864			46.0	%
Real estate taxes		346,669			230,165			116,504			50.6	%
Depreciation and amortization		537,968			326,029			211,939			65.0	%
General and administration		558,074			486,379			71,695			14.7	%
Noncash share-based compensation		-			425,000			(425,000	)		-100.0	%
Acquisition costs		-			18,265			(18,265	)		-100.0	%
Total expenses		2,036,050			1,892,313			143,737			7.6	%
Operating income (loss)		7,272			(511,233	)		518,505			-101.4	%
Other income (expenses):
Casualty loss, net		(978,181	)		-			(978,181	)
Net gain on sale of residential properties		-			-			-
Other income		5,466			496			4,970
Interest expense		(342,253	)		(260,506	)		(81,747	)		-31.4	%
Total other income (expenses), net		(1,314,968	)		(260,010	)		(1,054,958	)		-405.7	%
Net loss	$	(1,307,696	)	$	(771,243	)	$	(536,453	)		-69.6	%

For the three months ended September 30, 2017, we had total rental income of $2,043,322 compared to total rental income of $1,381,080 for the three months ended September 30, 2016. The increase is due primarily to an increase in the number of homes owned during the 2017 period when compared to the number of homes owned during the three months ended September 30, 2016. As of September 30, 2017, we owned 755 homes, at September 30, 2016 we owned 527 homes.

As of September 30, 2017, 709, or 93.9%, of our 755 homes were occupied. During the three months ended September 30, 2017, we had 60 home leases turnover, which represented approximately 7.9% of our end of the quarter portfolio. As of September 30, 2017, we had 25 homes in Houston and Jacksonville which were temporarily vacant due to the effects of Hurricane Harvey and Irma. As of September 30, 2016, 496, or 94.1%, of our 527 homes were occupied. During the quarter ended September 30, 2016, we had 42 home leases turnover, which represented approximately 8.0% of our end of the quarter portfolio.

13

For the three months ended September 30, 2017, we had property operating and maintenance expenses of $593,339 compared to $406,475 for the corresponding prior year period. Property operating and maintenance expenses consist of insurance, property management fees paid to third parties, repairs and maintenance costs, home owner association fees, and other miscellaneous property costs. Real estate taxes for the three months ended September 30, 2017 were $346,669 compared to $230,165 for the three months ended September 30, 2016. The increase in property operating, maintenance expenses from 2016 to 2017 reflects the corresponding increase in our inventory of single family homes. The increase in real estate taxes from 2016 to 2017 is based on an increase in our inventory of single family homes and an increase in our provision for 2017 real estate taxes due to preliminary indications of tax assessment values increases in excess of our historical annual increases. These increases our due to market value increases for many of our homes since our initial purchase. We had net operating income from rentals of $1,103,314 for the three months ended September 30, 2017 compared to net operating income from rentals of $744,440 in the corresponding prior year period. This resulted in a net operating income margin of 54.0% in 2017 compared to a net operating income margin of 53.9% in 2016.

Depreciation and amortization on our home investments increased to $537,968 for the three months ended September 30, 2017 compared to $326,029 in 2016, reflecting the corresponding increase in our inventory of single family homes.

General and administrative expenses for the three months ended September 30, 2017 totaled $558,074 compared to general and administrative expenses of $486,379 for the corresponding prior year period. General and administrative expenses consist of personnel costs, outside director fees, occupancy fees, public company filing fees, legal, accounting, and other general expenses. The increase in our general and administrative expenses is due to marginal increases in personnel, board of director expenses, travel and promotional expense in 2017 when compared to 2016.

During the three months ended September 30, 2016, noncash share-based compensation was $425,000 due to vesting of share awards to certain officers and consultants upon the achievement of certain milestones related to our stock offering in that period. There was no corresponding noncash share-based compensation in the corresponding current period.

Real estate acquisition costs were $18,265 for the three months ended September 30, 2016. Due to new accounting guidance, our purchases of portfolios of rented single family homes are now considered to be asset purchases; thus, corresponding acquisition costs will now be capitalized as part of our purchase price of the single family residential properties acquired. Thus, there were no real estate acquisition costs expensed for the three months ended September 30, 2017. Real estate acquisition costs in 2016 consisted primarily of closing costs, due diligence costs and reports, and legal and accounting fees relating to our acquisitions of single family homes.

The above results in total expenses of $2,036,050 for the three months ended September 30, 2017 resulting in an operating income for the three months ended September 30, 2017 of $7,272, compared to total expenses of $1,892,313 for the three months ended September 30, 2016 and a corresponding operating loss of $511,233 for the three months ended September 30, 2016.

During the three months ended September 30, 2017, we incurred casualty losses of $978,181 primarily due to damages to our homes from Hurricane Harvey and Irma. These homes are currently being repaired and we expect them to be restored to their pre-storm conditions. We expect costs in excess of our deductibles and recorded casualty loss to be reimbursed by our insurance carriers. We did not incur any casualty losses during the three months ended September 30, 2016. Other income was $5,466 for the three months ended September 30, 2017 as compared to other income of $496 for the three months ended September 30, 2016. Interest expense on our notes payable was $342,253 for the three months ended September 30, 2017 compared to $260,506 for the three months ended September 30, 2016. The increase is primarily due to higher note payable balances for the three months ended September 30, 2017 when compared to the corresponding period in 2016. This resulted in net other expense of $1,314,968 for the three months ended September 30, 2017 compared to a net other expense of $260,010 for the three months ended September 30, 2016.

Net loss for the three months ended September 30, 2017 was $1,307,696. The net loss for the three months ended September 30, 2016 was $771,243. The weighted average number of shares outstanding for the three months ended September 30, 2017 increased to 10,734,025 from 8,245,013 for the three months ended September 30, 2016 resulting in a net loss per share of $0.12 for the three months ended September 30, 2017 and a net loss per share of $0.09 for the three months ended September 30, 2016. The increase in weighted average number of shares outstanding was due to the completion of our public offering during 2016. Note that if the effect of the casualty loss caused by Hurricane Harvey and Irma were removed from our operating results for the three months ending September 30, 2017, the net loss would have been approximately $329,515 or approximately $.03 per share.

14

Nine Months Ended September 30, 2017 Compared to Nine Months Ended September 30, 2016

The following table sets forth a comparison of the results of operations for the nine months ended September 30, 2017 and 2016:

							$			%
	2017			2016			Change			Change
Revenue:
Rental income	$	5,814,135		$	4,153,979		$	1,660,156			40.0	%
Expenses:
Property operating and maintenance		1,694,969			1,207,217			487,752			40.4	%
Real estate taxes		988,839			658,256			330,583			50.2	%
Depreciation and amortization		1,458,933			964,953			493,980			51.2	%
General and administration		1,860,473			1,466,865			393,608			26.8	%
Noncash share-based compensation		-			425,000			(425,000	)		-100.0	%
Acquisition costs		-			76,129			(76,129	)		-100.0	%
Total expenses		6,003,214			4,798,420			1,204,794			25.1	%
Operating loss		(189,079	)		(644,441	)		455,362			-70.7	%
Other income (expenses):
Casualty loss, net		(895,194	)		-			(895,194	)
Net gain on sale of residential properties		75,796			-			75,796
Other income		13,628			805			12,823
Interest expense		(967,410	)		(775,849	)		(191,561	)		-24.7	%
Total other income (expenses), net		(1,773,180	)		(775,044	)		(998,136	)		-128.8	%
Net loss	$	(1,962,259	)	$	(1,419,485	)	$	(542,774	)		-38.2	%

For the nine months ended September 30, 2017, we had total rental income of $5,814,135 compared to total rental income of $4,153,979 for the nine months ended September 30, 2016. The increase in total rental and other income is due primarily to the increase in rental homes owned for the 2017 time period as compared to 2016.

For the nine months ended September 30, 2017, we had property operating and maintenance expenses of $1,694,969 compared to $1,207,217 for the nine months ended September 30, 2016. Real estate taxes for the nine months ended September 30, 2017 were $988,839 compared to $658,256 for the nine months ended September 30, 2016. The increase in real estate taxes from 2016 to 2017 is due to a corresponding increase in our inventory of single family homes, and increase in tax assessments due to fair market value increases in our homes when compared to historical tax assessments.

We had net operating income from rentals of $3,130,327 for the first nine months of 2017 compared to net operating income from rentals of $2,288,506 in the corresponding prior year’s period. The increase in net operating income is due primarily to the increase in rental homes owned during the current 2016 period. This results in a net operating income margin of 53.8% in 2017 compared to a net operating income margin of 55.1% in 2016.

Depreciation and amortization increased to $1,458,933 during the nine months ended September 30, 2017 compared to $964,953 during the nine months ended September 30, 2016, reflecting the corresponding increase in our inventory of single family homes.

General and administrative expenses for the nine months ended September 30, 2017 totaled $1,860,473 compared to general and administrative expenses of $1,466,865 for the prior year period. The increase in our general and administrative expenses is due primarily to marginal increases in legal, accounting, personnel, board of director fees, miscellaneous travel and promotional expense in 2017 when compared to 2016, due to an increase in acquisition and promotional activities in the current period.

During the nine months ended September 30, 2016, noncash share-based compensation was $425,000 due to vesting of share awards to certain officers and consultants upon the achievement of certain milestones related to our stock offering in that period. There was no corresponding noncash share-based compensation in the corresponding current period.

Real estate acquisition costs for the nine months ended September 30, 2016 totaled $76,129. Due to new accounting guidance, our purchase of portfolios of rented single family homes are now considered to be asset purchases; thus, corresponding acquisition costs will now be capitalized as part of our purchase price of the single family residential properties acquired. Thus, there were no real estate acquisition costs expensed for the nine months ended September 30, 2017. Real estate acquisition costs in 2016 consisted primarily of closing costs, due diligence costs and reports, and legal and accounting fees relating to our acquisitions of single family homes.

15

During the nine months ended September 30, 2017, we incurred net casualty losses of $895,194 primarily due to damages to our homes from Hurricane Harvey and Irma in the last quarter. These homes are currently being repaired and we expect them to be restored to their pre-storm conditions. We expect costs in excess of our deductibles and recorded casualty loss to be reimbursed by our insurance carriers. We did not incur any casualty losses during the three months ended September 30, 2016. We sold two residential properties during the nine months ended September 30, 2017 for a gain of $75,796. There were no corresponding sales during the nine months ended September 30, 2016. Other income was $13,628 for the nine months ended September 30, 2017, as compared to other income of $805 for the nine months ended September 30, 2016. Interest expense on our notes payable was $967,410 for the nine months ended September 30, 2017 compared to $775,849 for the nine months ended September 30, 2016. The increase is primarily due to higher note payable balances for the nine months ended September 30, 2017 when compared to the corresponding period in 2016. This resulted in net other expense of $1,773,180 for the nine months ended September 30, 2017 compared to a net other expense of $775,044 for the nine months ended September 30, 2016.

Net loss for the nine months ended September 30, 2017 was $1,962,259. The net loss for the nine months ended September 30, 2016 was $1,419,485. The weighted average number of shares outstanding for the nine months ended September 30, 2017 increased to 10,734,025 from 7,441,650 for the nine months ended September 30, 2016, resulting in a net loss per share of $0.18 for the nine months ended September 30, 2017 and a net loss per share of $0.19 for the nine months ended September 30, 2016. Note that if the effect of the casualty loss caused by Hurricane Harvey and Irma were removed from our operating results for the nine months ending September 30, 2017, the net loss would have been approximately $1,067,065 or approximately $.10 per share.

Liquidity and Capital Resources

Liquidity is a measure of our ability to meet potential cash requirements, fund and maintain our assets and operations, make interest payments and fund other general business needs. Our liquidity, to a certain extent, is subject to general economic, financial, competitive and other factors that are beyond our control. Our near-term liquidity requirements consist primarily of acquiring properties, funding our operations, and making interest payments.

Our liquidity and capital resources as of September 30, 2017 consisted primarily of cash of $6,980,464. We believe our current liquidity and the expected cash flows from operations will be sufficient to fund the present level of our operations through the 12 months following the date of this report. However, our future acquisition activity will depend primarily on our ability to raise funds from the further issuance of shares of our common stock or units of our operating partnership combined with new loan transactions secured by our current and future home inventories. In order to purchase additional single family homes, we intend to opportunistically utilize the capital markets to raise additional capital, including through the issuance of debt and equity securities, but there can be no assurance that we will be able to access adequate liquidity sources on favorable terms, or at all.

Credit Facilities

On January 31, 2017, we borrowed $5,020,000 from a regional bank pursuant to our issuance of a promissory note secured by deeds of trust in the principal amount of $5,020,000. Principal and accrued interest are payable in 60 consecutive monthly installments of $31,759 on the first day of the month until January 31, 2022 when the entire amount of principal and interest remaining unpaid will be payable. Interest accrues and is payable monthly on the loan at the rate equal to four and one-half percent (4.50%) per annum until maturity. The loan is secured by first priority liens on 97 homes in the Houston, Texas metropolitan area. The note and the deeds of trust contain customary terms and conditions, including, without limitation, customary events of default and acceleration upon default, including defaults in the payment of principal or interest, defaults in compliance with the covenants and bankruptcy or other insolvency events.

On April 4, 2017, we entered into loan modification agreements where we modified the interest rate and amended the maturity period on our loans with another regional bank with a total current outstanding principal amount due of approximately $19,500,000. The modified loan agreement provides that monthly interest and principal payments will be made based on a fixed interest rate of 4.5% and an amortization period of 25 years. All unpaid principal will be due on April 5, 2020. The other terms remain generally unchanged. These loans are secured by first priority liens and related rents on our properties.

On August 1, 2017, we received loan proceeds and issued a promissory note in the principal amount of $1,793,633 to a regional bank secured by our homes located in Georgia. Interest accrues at a fixed rate of 4.5% and monthly principal and interest payments will be made based on a 25-year amortization period with the remaining unpaid principal due July 5, 2020.

On August 22, 2017, we received loan proceeds and issued a promissory note in the principal amount of $1,155,000 to a regional bank secured by 28 of the Company’s homes located in Tennessee. Interest accrues at a fixed rate of 4.5% and monthly principal and interest payments will be made based on a 25-year amortization period with the remaining unpaid principal due September 5, 2020.

16

Cash Flows

The following table summarizes our cash flows for the nine months ended September 30, 2017 and 2016.

							$
	2017			2016			Change
Net cash provided by (used in) operating activities		321,752			(84,921	)		406,673
Net cash used in investing activities		(10,171,771	)		(389,502	)		(9,782,269	)
Net cash provided by financing activities		6,785,506			14,416,328			(7,630,822	)
Change in cash		(3,064,513	)		13,941,905			(17,006,418	)

Operating Activities

We had net cash provided by operating activities of $321,752 for the nine months ended September 30, 2017. This resulted from a net loss of $1,962,259, adding back depreciation and amortization of $1,458,933, amortization of deferred loan fees of $108,117, and casualty loss, net of $895,194 and deducting gain on sale of residential property of $75,796, and then decreasing the amount by the net change in operating assets and liabilities of $102,437.

We had net cash used in operating activities of $84,921 for the nine months ended September 30, 2016. This resulted from a net loss of $1,419,485, adding back depreciation and amortization of $964,953, noncash share-based compensation of $425,000 and amortization of deferred loan fees of $90,981, and then decreasing the amount by the net change in operating assets and liabilities of $146,370.

Investing Activities

During the nine months ended September 30, 2017, we invested $10,117,039 in new homes, $668,268 in capital improvements for our homes, and $219,407 in lease origination costs. We received $205,027 of proceeds on the disposition of residential property, $554,806 of insurance proceeds for property damages, and received $73,110 in refunds of escrow deposits for a total of $10,171,771 of cash used in investing activities.

During the nine months ended September 30, 2016, we invested $364,823 in capital improvements and $76,080 in lease origination costs, and received $51,401 in refunds of escrow deposits for a total of $389,502 of cash used in investing activities.

Financing Activities

During the nine months ended September 30, 2017, we had net cash provided by financing activities of $6,785,506 derived from $7,968,633 of proceeds from a note payable, less $405,750 of notes payable principal payments, less $220,773 of loan fees, less payments of deferred stock issuance costs of $556,604.

During the nine months ended September 30,2016, we had net cash provided by financing activities of $14,416,328 consisting of $15,415,100 of proceeds from the issuance of shares, less $27,056 in notes payable principal payments and $971,716 of payments of deferred stock issuance costs.

Our future acquisition activity relies primarily on our ability to raise funds from the further issuance of common shares combined with new loan transactions secured by our current and future home inventories. We remain focused on acquiring new capital. We believe our current cash balance combined with our estimated future net rental revenue is sufficient to fund our operating activities through the 12 months following the date of this report.

Off Balance Sheet Arrangements

None.

17

Net Operating Income

We define net operating income (or NOI) as total revenue less property operating and maintenance and real estate taxes. NOI is a non-GAAP measurement that excludes acquisition costs, depreciation and amortization, general and administration, legal and accounting, and interest expenses.

We consider NOI to be a meaningful financial measure when considered with the financial statements determined in accordance with GAAP. We believe NOI is helpful to investors in understanding the amount of income after operating expenses which is generated in a given period.

The following is a reconciliation of our NOI to net loss as determined in accordance with GAAP for the three and nine month periods ended September 30, 2017 and 2016.

	Three Months ended September 30,						Nine Months ended September 30,
	2017			2016			2017			2016
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Net loss	$	(1,307,696	)	$	(771,243	)	$	(1,962,259	)	$	(1,419,485	)
Depreciation and amortization		537,968			326,029			1,458,933			964,953
General and administration		558,074			486,379			1,860,473			1,466,865
Noncash share-based compensation		-			425,000			-			425,000
Acquisition costs		-			18,265			-			76,129
Other income (expenses), net		1,314,968			260,010			1,773,180			775,044
Net operating income	$	1,103,314		$	744,440		$	3,130,327		$	2,288,506
Net operating income as a percentage of total revenue		54.0	%		53.9	%		53.8	%		55.1	%

NOI should not be considered an alternative to net loss or net cash flows from operating activities, as determined in accordance with GAAP, as indications of our performance or as measures of liquidity. Nor is NOI necessarily indicative of cash available to fund future cash needs or distributions to shareholders. In addition, although we use NOI for comparability in assessing our performance against other REITs, not all REITs compute the same non-GAAP measure of NOI. Accordingly, our basis for computing this non- GAAP measure may not be comparable with that of other REITs. This is due in part to the differences in property operating and maintenance expenses incurred by, and real estate taxes applicable to, different companies and the significant effect these items have on NOI.

Funds From Operations and Core Funds From Operations

Funds From Operations (or FFO) is a non-GAAP financial measure that we believe, when considered with the financial statements determined in accordance with GAAP, is helpful to investors in understanding our performance because it captures features particular to real estate performance by recognizing that real estate generally appreciates over time or maintains residual value to a much greater extent than do other depreciable assets. The National Association of Real Estate Investment Trusts (or NAREIT) defines FFO as net income (computed in accordance with GAAP), excluding gains (or losses) from sales of, and impairment losses recognized with respect to, depreciable property, plus depreciation and amortization, and after adjustments for unconsolidated partnerships and joint ventures. Adjustments for unconsolidated partnerships and joint ventures are calculated on the same basis to determine FFO.

Core Funds From Operations (or Core FFO) is a non-GAAP financial measure that we use as a supplemental measure of our performance. We believe that Core FFO is further helpful to investors as it provides a more consistent measurement of our performance across reporting periods by removing the impact of certain items that are not comparable from period to period. We adjust FFO for expensed acquisition fees and costs, share-based compensation, non-cash interest expense related to amortization of deferred financing costs, casualty gains and losses, and certain other non-comparable costs to arrive at Core FFO.

FFO and Core FFO should not be considered alternatives to net income (loss) or net cash flows from operating activities, as determined in accordance with GAAP, as indications of our performance or as measures of liquidity. These non-GAAP measures are not necessarily indicative of cash available to fund future cash needs. In addition, although we use these non-GAAP measures for comparability in assessing our performance against other REITs, not all REITs compute the same non-GAAP measures. Accordingly, there can be no assurance that our basis for computing these non-GAAP measures is comparable with that of other REITs. This is due in part to the differences in capitalization policies used by different companies and the significant effect these capitalization policies have on FFO and Core FFO. Real estate costs which are accounted for as capital improvements are added to the carrying value of the property and depreciated over time, whereas real estate costs that are expenses are accounted for as a current period expense. This affects FFO and Core FFO because costs that are accounted for as expenses reduce FFO and Core FFO. Conversely, real estate costs associated with assets that are capitalized and then subsequently depreciated are added back to net income to calculate FFO and Core FFO.

18

The following table sets forth a reconciliation of our net loss as determined in accordance with GAAP and our calculations of FFO and Core FFO for the three and nine months ended September 30, 2017 and 2016:

	Three Months ended September 30,						Nine Months ended September 30,
	2017			2016			2017			2016
	(unaudited)			(unaudited)			(unaudited)			(unaudited)
Net loss	$	(1,307,696	)	$	(771,243	)	$	(1,962,259	)	$	(1,419,485	)
Add back depreciation and amortization		537,968			326,029			1,458,933			964,953
Less gain on sale of residential property		-			-			(75,796	)		-
Funds from (used in) operations	$	(769,728	)	$	(445,214	)	$	(579,122	)	$	(454,532	)
Add back noncash amortization of deferred loan fees		39,998			30,327			108,117			90,981
Add back casualty loss, net		978,181			-			895,194			-
Add back noncash share-based compensation		-			425,000			-			425,000
Add back acquisition costs		-			18,265			-			76,129
Core funds from operations	$	248,451		$	28,378		$	424,189		$	137,578

19

Item 3. Quantitative and Qualitative Disclosure About Market Risk.

As a “smaller reporting company” defined in Item 10(f)(1) of Regulation S-K, we are electing scaled disclosure reporting obligations and therefore are not required to provide the information requested by this item.

Item 4. Controls and Procedures.

Internal Control Over Financial Reporting

During the three months ended September 30, 2017, there were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934 (“Exchange Act”)) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the Exchange Act as of September 30, 2017.  Disclosure controls and procedures means controls and other procedures of an issuer that are designed to ensure that information required to be disclosed by the issuer in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission's rules and forms. Based on this evaluation, our Chief Executive Officer and our Chief Financial Officer concluded that our disclosure controls and procedures were effective as of September 30, 2017.

20

PART II - OTHER INFORMATION

Item 6. Exhibits.

Exhibit No.	Description	Method of Filing
10.1	Promissory Note Secured by Deeds of Trust dated July 28, 2017 between Registrant and Silvergate Bank, a California corporation	Filed herewith
10.2	Promissory Note Secured by Deeds of Trust dated August 21, 2017 between Registrant and Silvergate Bank, a California corporation	Filed herewith
10.3	Single Family Homes Real Estate Purchase and Sale Agreement (Birmingham 50) dated September 6, 2017	Incorporated by reference from the Registrant’s Current Report on Form 8-K filed with the SEC on September 7, 2017
10.4	Amendment to Real Estate Purchase and Sale Agreement (Birmingham 50) dated September 27, 2017.	Incorporated by reference from the Registrant’s Current Report on Form 8-K/A filed with the SEC on September 28, 2017
31.1	Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	Filed herewith
31.2	Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.	Filed herewith
32.1	Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.	Filed herewith
101.INS	XBRL Instance Document	Filed herewith
101.SCH	XBRL Taxonomy Extension Schema Document	Filed herewith
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document	Filed herewith
101.LAB	XBRL Taxonomy Extension Label Linkbase Document	Filed herewith
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document	Filed herewith
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document	Filed herewith

21

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned thereunto duly authorized.

Dated: November 9, 2017	REVEN HOUSING REIT, INC.
		/s/ Chad M. Carpenter
		Chad M. Carpenter,
		Chief Executive Officer
		(Principal Executive Officer)
Dated: November 9, 2017	REVEN HOUSING REIT, INC.
		/s/ THAD L. MEYEr
		Thad L. Meyer,
		Chief Financial Officer
		(Principal Financial Officer)

22

EX-10.1

Exhibit 10.1

PROMISSORY NOTE SECURED BY DEEDS TO SECURE DEBT

$1,793,633.00 Dekalb, Clayton, Fulton, Newton, and Gwinnett Counties, Georgia

July 28, 2017

FOR VALUE RECEIVED, the undersigned ("Borrower") promises to pay to SILVERGATE BANK, a California corporation ("Lender"), or order, during regular business hours at Silvergate Bank, 4250 Executive Square, Suite 300, La Jolla, California 92037-1492, Attention: Commercial RE Group, or at such other place as Lender may from time to time designate by written notice to Borrower, with sufficient information to identify the source and application of such payment, the sum of up to One Million Seven Hundred Ninety-Three Thousand Six Hundred Thirty-Three and No/100 Dollars ($1,793,633.00), together with interest on the balance of outstanding principal from the disbursement dates thereof at the per annum rate set forth below. All calculations of interest hereunder shall be computed on the basis of a 360 day year for the actual number of days elapsed.

1.Interest Rate. The outstanding principal balance under this Note shall bear interest at a per annum rate of [four and one-half percent (4.50%)] (the "Contract Rate").

2.Monthly Payments of Principal and Interest First Month. Commencing with the date of the initial disbursement of funds through and including August 4, 2017, in which such disbursement occurs, interest only shall be payable in advance on the date of this Note at the Contract Rate. Interest for such partial month shall be computed on the basis of a 360-day year and shall be equal to the sum of a per diem interest charge (for each day the principal balance hereof is outstanding during such partial month) equal to the product of (a) 1/360 and (b) the Contract Rate and (c) the outstanding principal balance hereunder for the day in question.

2.2     Monthly Payments. Commencing on September 5, 2017 and continuing on the fifth day of each of the next calendar months thereafter through and including June 5, 2020, Borrower shall pay to Lender monthly payments of principal and interest in an amount equal to the amount which would be sufficient to amortize the outstanding principal balance under this Note (as of the date of such payment) at the then effective Contract Rate over the then remaining portion of an amortization period commencing on August 5, 2017 and ending on August 4, 2042.

3.           Maturity Date. The entire balance of principal and accrued interest and other amounts then outstanding on this Note are due and payable on July 5, 2020 (the "Maturity Date"). Borrower acknowledges that such balance will not equal the regular monthly payment specified in Section 2.

1   Promissory Note

4.Application of Payments. Each payment hereunder shall be applied when received first to the payment of accrued interest on the principal balance hereof from time to time remaining unpaid and then to reduce principal and then to amounts payable, if any, into escrow accounts payable under the Loan Documents for taxes or insurance and then to any unpaid "Past Due Charge" (as defined below); provided, however, upon the occurrence of an "Event of Default" (as defined below), payments may be applied to any amounts secured by any of the "Security Instruments" (as defined below) in such order and amounts as is designated by Lender in its sole and absolute discretion. No such application by Lender shall constitute a cure or waiver of any default by Borrower under the applicable Security Instrument or under this Note. If notwithstanding the parties' election and agreement that Georgia law governs this Note, California law is applied to this Note, Borrower hereby waives any rights and benefits, if any, that may arise under or by virtue of California Civil Code Section 2822(a). Without limitation of the foregoing, in the event of any partial payment hereunder, Lender shall have the sole right and authority to determine which portion of the indebtedness evidenced hereby any partial payment may be applied against, if any; provided that, nothing in the foregoing shall impose upon Lender any duty or obligation to accept or apply any partial payment received by Lender hereunder or under the applicable Security Instrument.

5.Default: Acceleration. This Note is secured by those certain Deeds to Secure Debt, Absolute Assignments of Rents and Leases, Security Agreements and Fixture Filings of even date herewith by Borrower for the benefit of Lender (individually, a "Security Instrument", and collectively, the "Security Instruments"). Upon the occurrence and during the continuance of an "Event of Default" (as defined in any of the Security Instruments), then, or at any time thereafter, the whole of the unpaid principal hereof, together with accrued and outstanding interest and all other sums required to be paid under this Note or the Security Instruments (including the prepayment premium hereinafter described) shall, at the election of Lender and with prior notice of such election, become due and payable. Lender's election may be exercised at any time after any such event, and the acceptance of one or more payments hereon from any person thereafter shall not constitute a waiver of Lender's election, or of its option to make such election.

6.Past Due Charge and Past Due Interest Rate. Borrower recognizes and acknowledges that any default on any payment, or portion thereof, due hereunder or to be made under any of the Security Instruments, will result in losses and additional expenses to Lender in servicing the indebtedness evidenced hereby, and in losses due to Lender's loss of the use of funds not timely received. Borrower further acknowledges and agrees that in the event of any such default, Lender would be entitled to damages for the detriment proximately caused thereby, but that it would be extremely difficult and impracticable to ascertain the extent of or compute such damages. Therefore, if for any reason Borrower fails to pay any interest or principal required to be paid under this Note, including any payment due at maturity or upon acceleration, or fails to pay any amounts due under any of the Security Instruments, within ten (10) days of when due, Borrower shall pay to Lender, in addition to any such delinquent payment, an amount equal to five percent (5%) of such delinquent payment ("Past Due Charge"). In addition, upon the Maturity Date or upon the occurrence and during the continuance of an Event of Default (or upon any acceleration), interest shall accrue hereunder at the "Past Due Rate" (as defined below). Borrower acknowledges that the Past Due Charge and interest at the Past Due Rate agreed to hereunder represent the reasonable estimate of those damages which would be incurred by Lender, and a fair return to Lender for the loss of the use of the funds not timely received from Borrower on account of a default by Borrower as herein specified, established by Borrower and Lender through good faith consideration of the facts and circumstances surrounding the transaction contemplated under this Note as of the date hereof, but that such Past Due Charge and interest at the Past Due Rate are in addition to, and not in lieu of, any other right or remedy available to Lender. If any applicable law proscribes the imposition of a past due charge in the amount of the Past Due Charge herein specified, or limits the rate of the additional interest that may be charged to a rate less than the Past Due Rate herein specified, then the maximum charge or rate permitted by such law shall be charged by Lender for purposes of this Section. As used herein, the "Past Due Rate" shall be equal to the lesser of (i) six (6) percentage points over the Contract Rate, or (ii) the maximum rate of interest permitted to be charged by applicable laws or regulation governing this Note until paid, such additional interest to be compounded annually.

2   Promissory Note

7.Prepayment. Except as provided in Section 12 herein, Borrower shall have no right to prepay any principal of this Note except that, so long as no default or Event of Default exists under this Note or any of the Security Instruments as of the date of such prepayment by Borrower, Borrower will have the privilege, to prepay the principal of this Note (in whole only and not in part) upon at least thirty (30) but not more than sixty (60) days advance written notice and subject to the following terms and conditions:

7.1.Premium. Concurrently with such prepayment, Borrower shall pay all accrued and unpaid interest under this Note (whether or not then due), all amounts then due under this Note and each of the Security Instruments and a prepayment premium equal to the following:

(1)A prepayment premium equal to two percent (2%) of the amount prepaid for a prepayment on or before August 5, 2018; and

(2)A prepayment premium equal to one percent (1%) of the amount prepaid for prepayments from and including August 6, 2018 through and including August 5, 2019; with no prepayment premium thereafter.

B. EXCLUSIVE RIGHTS. BORROWER ACKNOWLEDGES AND AGREES THAT BORROWER HAS NO RIGHTS OF PREPAYMENT OF THIS NOTE, EXCEPT AS PROVIDED ABOVE; AND BORROWER FURTHER AGREES THAT, IF THE MATURITY OF THIS NOTE IS ACCELERATED BY LENDER BY REASON OF THE EXISTENCE AND CONTINUANCE OF AN EVENT OF DEFAULT AND BORROWER OR ANY THIRD PERSON THEREAFTER SEEKS TO PAY SUCH ACCELERATED INDEBTEDNESS OR PURCHASE ANY OR ALL THE PROPERTIES (INDIVIDUALLY, A "PROPERTY", AND COLLECTIVELY, THE "PROPERTIES") ENCUMBERED BY THE SECURITY INSTRUMENTS SECURING THIS NOTE AT FORECLOSURE SALE, SUCH PAYOFF OR PURCHASE SHALL CONSTITUTE A PREPAYMENT OF PRINCIPAL HEREUNDER AND A PREMIUM SHALL BE PAYABLE IN AN AMOUNT WHICH SHALL BE COMPUTED PURSUANT TO THIS SECTION 7 (INCLUDING THE PREPAYMENT PREMIUM).

3   Promissory Note

8.Costs. Borrower promises to pay to Lender, within five (5) business days after written notice from Lender, all out-of-pocket costs, expenses, disbursements, property taxes, escrow fees, title charges and legal fees and expenses actually incurred by Lender or its counsel (which must be reasonable provided no Event of Default has occurred and is existing) in the negotiation, funding, enforcement or attempted enforcement, by foreclosure or otherwise, of this Note or any of the Security Instruments. Without limitation on the foregoing, Borrower agrees to pay all out-of pocket costs of collection, including attorneys' fees and costs (whether or not for salaried attorneys regularly employed by Lender) and all costs of any action or proceeding (including any bankruptcy proceeding or any non-judicial foreclosure or private sale) actually incurred by Lender, in the event any payment is not paid when due, or in case it becomes necessary to enforce any other obligation of Borrower hereunder or to protect the security for the indebtedness evidenced hereby, or for the foreclosure by Lender of any of the Security Instruments, or in the event Lender is made a party to any litigation because of the existence of the indebtedness evidenced by this Note, or because of the existence of any of the Security Instruments. All such costs are secured by the Security Instruments. The obligation of Borrower to repay all such out of-pocket costs and any other advances by Lender are secured by the Security Instruments and shall be deemed to be evidenced by this Note and shall accrue interest at the Contract Rate or the Past Due Rate, whichever is then applicable.

9.Waivers. Borrower hereby waives diligence, presentment, protest and demand, notice of protest, of demand, of nonpayment, of dishonor and of maturity and agrees that time is of the essence of every provision hereof; and further agrees that any such renewal, extension or modification, or the release or substitution of any person or security for the indebtedness evidenced hereby, shall not affect the liability of any of such parties for the indebtedness evidenced by this Note or the obligations under any of the Security Instruments . Any such renewals, extensions, modifications, releases or substitutions may be made without notice to any of such parties.

10.Remedies Cumulative. The rights and remedies of Lender as provided in this Note and in each of the Security Instruments shall be cumulative and concurrent and may be pursued singly, successively or together against Borrower, any of the Properties, or any other persons or entities who are, or may become liable for all or any part of this indebtedness, and any other funds, property or security held by Lender for the payment hereof, or otherwise, at the sole discretion of Lender. Failure to exercise any such right or remedy shall in no event be construed as a waiver or release of such rights or remedies, or the right to exercise them at any later time. The right, if any, of Borrower, and all other persons or entities, who are, or may become, liable for this indebtedness, to plead any and all statutes of limitation as a defense is expressly waived by ach and all of such parties to the full extent permissible by law.

4   Promissory Note

11.Security Instrument Provisions Regarding Transfers: Successors. Each of the Security Instruments securing this Note contains provisions for the acceleration of the indebtedness evidenced hereby upon a "Transfer" (as therein defined). Subject to the limitations on Transfer specified in each of the Security Instruments, the provisions hereof shall be binding on the heirs, legal representative,s successors and assigns of Borrower and shall inure to the benefit of Lender and the successors and assigns of Lender.

12.Partial Release. Notwithstanding anything herein to the contrary contained in this Note, Lender shall consent to a partial prepayment of the principal of this Note and thereafter causing a release from the lien of the applicable Security Instrument any applicable Property, such Property to be released, the "Released Property", but only upon the satisfaction of all of the following conditions:

a.Lender shall have received from Borrower at least thirty (30) days' prior written notice of the date proposed for such release (the "Release Date") and the identification of the Released Property;

b.No Event of Default in any of the Security Instruments shall have occurred and be continuing as of the date of such notice and the Release Date and no event or condition shall exist that, with the passage of time or giving of notice, would constitute an Event of Default in any of the Security Instruments;

c.The release shall occur contemporaneously with the sale of the Released Property pursuant to an arm's-length, bona fide contract to a person who is not an affiliate of Borrower or any person or entity with any interest in Borrower, whether direct or indirect;

d.Borrower shall pay to Lender on the Release Date an amount equal to the "Release Price" amount as indicated for such Released Property on Exhibit "A" attached to this Note (the "Release Price"). The Release Price shall be applied to the Loan to outstanding principal balance of the Loan (unless an Event of Default exists, in which event, amounts may be applied in such order as determined by Lender, including the applicable prepayment premium);

e.Borrower shall have provided Lender with evidence reasonably acceptable to Lender that the Released Property has been formally designated as a distinct tax lot separate from the remaining Properties;

f.Borrower shall have provided Lender with evidence reasonably acceptable to Lender that the Released Property and the remaining portion of the Properties shall be legal lots or parcels in material compliance with the all Georgia subdivision acts and local ordinances thereunder and that the remaining portion of the Property has adequate ingress and egress;

5   Promissory Note

g.If requested by Lender, Borrower, at its sole cost and expense, shall have delivered to Lender a title endorsement to the mortgagee policy of title insurance delivered to Lender on the date hereof in connection with the Security Instruments insuring that, after giving effect to such release, such title policy coverage has not been terminated or reduced by such releases; and

h.Borrower shall have paid all of Lender's reasonable out-of-pocket costs and expenses actually incurred by Lender, including, without limitation, attorneys' fees and expenses, in connection with the release of the Released Property.

Upon payment of the Release Price and the satisfaction of the other conditions set forth in this Section 12 for the release of the Released Property, the security interests and liens of Lender under the applicable Security Instrument shall be released from the Released Property, and Lender will execute and deliver, at Borrower's sole cost and expense, any agreements reasonably requested by Borrower to release and terminate the lien of the applicable Security Instrument as to the Released Property; provided, however, that such release and termination shall be without recourse to Lender and made without any representation or warranty, but, in any event, in standard form that should be reasonably sufficient to remove the lien of the Security Instruments as an exception on the purchaser's owner's title insurance policy for the Released Property. Upon the release and termination of Lender's security interests and liens under the applicable Security Instrument and the other Loan Documents relating to the Released Property, all references in the applicable Security Instrument and the other Loan Documents relating to the Released Property shall be deemed deleted, except as otherwise provided herein with respect to indemnities.

13.            Miscellaneous.

13.1Manner of Payment; No Offsets. All payments due hereunder shall be made in lawful money of the United States of America. Such payments shall be made by check or, upon maturity and otherwise at the option of Lender, by transferring the payment in federal or immediately available funds by bank wire or interbank transfer for the account of Lender without presentment or surrender of this Note, provided; however, that any payment of principal or interest received after 5:00 p.m. Pacific time shall be deemed to have been received by Lender on the next business day and shall bear interest accordingly. All sums due hereunder shall be payable without offset, demand, abatement or counter-claim of any kind or nature whatsoever, all of which are hereby waived by Borrower.

13.2Fee for Statement. For any statement regarding the obligations evidenced hereby to be furnished by Lender, Borrower shall pay the fee then charged by Lender therefor, not to exceed, however, the maximum fee, if any, allowed by law to be charged by Lender at the time such statement is requested.

13.3No Amendment or Waiver Except in Writing. This Note may be amended or modified only by a writing duly executed by Borrower and Lender, which expressly refers to this Note and the intent of the parties so to amend this Note. No provision of this Note will be deemed waived by Lender, unless waived in a writing executed by Lender, which expressly refers to this Note, and no such waiver shall be implied from any act or conduct of Lender, or any omission by Lender to take action with respect to any provision of this Note or any of the Security Instruments. No such express written waiver shall affect any other provision of this Note, or cover any default or time period or event, other than the matter as to which an express written waiver has been given. Without limitation, acceptance of any partial payment shall not constitute a waiver of any of Lender's rights, including the right to insist on immediate payment of all amounts due and payable.

6   Promissory Note

13.4No Intent of Usury. None of the terms and provisions contained in this Note, or in any of the Security Instruments, or in other documents or instruments related hereto, shall ever be construed to create a contract for the use, forbearance or detention of money requiring payment of interest or any other consideration that constitutes interest under applicable law, as the case may be, at a rate in excess of the maximum interest permitted to be charged by applicable laws or regulation governing this Note ("Usury Laws"). Borrower shall never be required to pay interest or any other consideration that constitutes interest under applicable law, as the case may be, on this Note in excess of the maximum interest that may be lawfully charged under such Usury Laws, as made applicable by the final judgment of a court of competent jurisdiction, and the provisions of this Section shall control over all other provisions hereof and of any other instrument executed in connection herewith or executed to secure the indebtedness evidenced hereby, which may be in apparent conflict with this Section. If Lender collects monies which are deemed to constitute interest which would otherwise increase the effective interest rate on this Note to a rate in excess of that permitted to be charged by such Usury Laws, all such sums deemed to constitute interest in excess of the maximum rate shall, at the option of Lender, either be credited to the payment of principal or returned to Borrower.

13.5Governing Law. This Note shall be governed by and construed and enforced in accordance with the laws of the State of Georgia (without regard to conflicts of laws), except where federal law is applicable (including, without limitation, any applicable federal usury ceiling or other federal law preempting state usury laws).

13.6Certain Rules of Construction. The headings of each Section of this Note are for convenience only and do not define or limit any provision of this Note. The provisions of this Note shall be construed as a whole according to their common meaning, not strictly for or against any party, or any person or entity, who is or may become liable for the payment of this Note, and to achieve the objectives of the parties unconditionally to impose on Borrower the indebtedness evidenced by this Note. Whenever the words "including", "includes" or "include" are used in this Note (including any Exhibit hereto), they shall be read non-exclusively as though the phrase", without limitation," immediately followed the same.

13.7Severability. If any term of this Note, or the application thereof to any person or circumstances, shall be invalid or unenforceable, the remainder of this Note, or the application of such term to persons or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each term of this Note shall be valid and enforceable to the fullest extent permitted by law.

7   Promissory Note

13.8Notices. Any notice which a party is required or may desire to give the other shall be in writing and may be sent by personal delivery or by mail (either [i] by United States registered or certified mail, return receipt requested, postage prepaid, or [ii] by Federal Express or similar generally recognized overnight carrier regularly providing proof of delivery}, addressed as follows (subject to the right of a party to designate a different address for itself by notice similarly given at least 15 days in advance):

To Lender:

Silvergate Bank

4250 Executive Square

Suite 300

La Jolla, California 92037-1492

Attention: Commercial RE Group

To Borrower:

Reven Housing Georgia, LLC

875 Prospect Street

Suite 304

La Jolla, California 92037

Attention: Thad Meyer

Any notice so given by mail shall be deemed to have been given as of the date of delivery (whether accepted or refused) established by U.S. Post Office return receipt or the overnight carrier's proof of delivery, as the case may be. Any such notice not so given shall be deemed given upon receipt of the same by the party to whom the same is to be given.

14.Lender Assignment. Lender may assign, sell or transfer at any time this Note (and any documents relating thereto and any interest therein).

TO THE MAXIMUM EXTENT PERMITTED BY LAW, BORROWER AND LENDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE, THE LOAN, OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER VERBAL OR WRITTEN) OR ACTION OF BORROWER OR LENDER OR ANY EXERCISE BY ANY PARTY OF THEIR RESPECTIVE RIGHTS UNDER THE LOAN DOCUMENTS OR IN ANY WAY RELATING TO THE LOAN OR ANY OF THE PROPERTIES OR THIS NOTE. THIS WAIVER IS A MATERIAL INDUCEMENT FOR LENDER TO MAKE THE LOAN TO BORROWER.

8   Promissory Note

IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date and year first written above.

BORROWER:
REVEN HOUSING GEORGIA, LLC,
a Delaware limited liability company
By:	Reven Housing REIT OP, LLC,
	a Delaware limited partnership,
	its Sole Member
	By:	/s/ Thad Meyer
		Thad Meyer
		Chief Financial Officer

[Signatures continue on following page]

SIGNATURE PAGE TO SUBORDINATION OF MANAGEMENT AGREEMENT

S-1

EX-10.2

Exhibit 10.2

PROMISSORY NOTE SECURED BY DEED OF TRUST

$1,155,000.00	Tennessee
	August 21, 2017

FOR VALUE RECEIVED, the undersigned (“Borrower”) promises to pay to SILVERGATE BANK, a California corporation (“Lender”), or order, during regular business hours at Silvergate Bank, 4250 Executive Square, Suite 300, La Jolla, California 92037-1492, Attention: Commercial RE Group, or at such other place as Lender may from time to time designate by written notice to Borrower, with sufficient information to identify the source and application of such payment, the sum of up to One Million One Hundred Fifty-Five Thousand and No/100 Dollars ($1,155,000.00), together with interest on the balance of outstanding principal from the disbursement dates thereof at the per annum rate set forth below. All calculations of interest hereunder shall be computed on the basis of a 360 day year for the actual number of days elapsed.

1.Interest Rate. The outstanding principal balance under this Note shall bear interest at a per annum rate of four and one-half percent (4.50%) (the “Contract Rate”).

2.Monthly Payments of Principal and Interest

2.1             First Month. Commencing with the date of the initial disbursement of funds through and including September 4, 2017, in which such disbursement occurs, interest only shall be payable in advance on the date of this Note at the Contract Rate. Interest for such partial month shall be computed on the basis of a 360-day year and shall be equal to the sum of a per diem interest charge (for each day the principal balance hereof is outstanding during such partial month) equal to the product of (a) 1/360 and (b) the Contract Rate and (c) the outstanding principal balance hereunder for the day in question.

2.2Monthly Payments. Commencing on October 5, 2017 and continuing on the fifth day of each of the next calendar months thereafter through and including September 5, 2020, Borrower shall pay to Lender monthly payments of principal and interest in an amount equal to the amount which would be sufficient to amortize the outstanding principal balance under this Note (as of the date of such payment) at the then effective Contract Rate over the then remaining portion of an amortization period commencing on September 5, 2017 and ending on September 4, 2042.

3.Maturity Date. The entire balance of principal and accrued interest and other amounts then outstanding on this Note are due and payable on September 5, 2020 (the “Maturity Date”). Borrower acknowledges that such balance will not equal the regular monthly payment specified in Section 2.

1   Promissory Note

4.Application of Payments. Each payment hereunder shall be applied when received first to the payment of accrued interest on the principal balance hereof from time to time remaining unpaid and then to reduce principal and then to amounts payable, if any, into escrow accounts payable under the Loan Documents for taxes or insurance and then to any unpaid “Past Due Charge” (as defined below); provided, however, upon the occurrence of an “Event of Default” (as defined below), payments may be applied to any amounts secured by any of the “Security Instruments” (as defined below) in such order and amounts as is designated by Lender in its sole and absolute discretion. No such application by Lender shall constitute a cure or waiver of any default by Borrower under the applicable Security Instrument or under this Note. If notwithstanding the parties’ election and agreement that Tennessee law governs this Note, California law is applied to this Note, Borrower hereby waives any rights and benefits, if any, that may arise under or by virtue of California Civil Code Section 2822(a). Without limitation of the foregoing, in the event of any partial payment hereunder, Lender shall have the sole right and authority to determine which portion of the indebtedness evidenced hereby any partial payment may be applied against, if any; provided that, nothing in the foregoing shall impose upon Lender any duty or obligation to accept or apply any partial payment received by Lender hereunder or under the applicable Security Instrument. 

5.Default; Acceleration. This Note is secured by that certain Deed of Trust, Assignments of Leases and Rents, Security Agreements and Fixture Filings of even date herewith by Borrower for the benefit of Lender (individually, a “Security Instrument”, and collectively, the “Security Instruments”). Upon the occurrence and during the continuance of an “Event of Default” (as defined in any of the Security Instruments), then, or at any time thereafter, the whole of the unpaid principal hereof, together with accrued and outstanding interest and all other sums required to be paid under this Note or the Security Instruments (including the prepayment premium hereinafter described) shall, at the election of Lender and with prior notice of such election, become due and payable. Lender’s election may be exercised at any time after any such event, and the acceptance of one or more payments hereon from any person thereafter shall not constitute a waiver of Lender’s election, or of its option to make such election.

6.Past Due Charge and Past Due Interest Rate. Borrower recognizes and acknowledges that any default on any payment, or portion thereof, due hereunder or to be made under any of the Security Instruments, will result in losses and additional expenses to Lender in servicing the indebtedness evidenced hereby, and in losses due to Lender’s loss of the use of funds not timely received. Borrower further acknowledges and agrees that in the event of any such default, Lender would be entitled to damages for the detriment proximately caused thereby, but that it would be extremely difficult and impracticable to ascertain the extent of or compute such damages. Therefore, if for any reason Borrower fails to pay any interest or principal required to be paid under this Note, including any payment due at maturity or upon acceleration, or fails to pay any amounts due under any of the Security Instruments, within ten (10) days of when due, Borrower shall pay to Lender, in addition to any such delinquent payment, an amount equal to five percent (5%) of such delinquent payment (“Past Due Charge”). In addition, upon the Maturity Date or upon the occurrence and during the continuance of an Event of Default (or upon any acceleration), interest shall accrue hereunder at the “Past Due Rate” (as defined below). Borrower acknowledges that the Past Due Charge and interest at the Past Due Rate agreed to hereunder represent the reasonable estimate of those damages which would be incurred by Lender, and a fair return to Lender for the loss of the use of the funds not timely received from Borrower on account of a default by Borrower as herein specified, established by Borrower and Lender through good faith consideration of the facts and circumstances surrounding the transaction contemplated under this Note as of the date hereof, but that such Past Due Charge and interest at the Past Due Rate are in addition to, and not in lieu of, any other right or remedy available to Lender. If any applicable law proscribes the imposition of a past due charge in the amount of the Past Due Charge herein specified, or limits the rate of the additional interest that may be charged to a rate less than the Past Due Rate herein specified, then the maximum charge or rate permitted by such law shall be charged by Lender for purposes of this Section. As used herein, the “Past Due Rate” shall be equal to the lesser of (i) six (6) percentage points over the Contract Rate, or (ii) the maximum rate of interest permitted to be charged by applicable laws or regulation governing this Note until paid, such additional interest to be compounded annually. 

2   Promissory Note

7.Prepayment. Except as provided in Section 12 herein, Borrower shall have no right to prepay any principal of this Note except that, so long as no default or Event of Default exists under this Note or any of the Security Instruments as of the date of such prepayment by Borrower, Borrower will have the privilege, to prepay the principal of this Note (in whole only and not in part) upon at least thirty (30) but not more than sixty (60) days advance written notice and subject to the following terms and conditions:

7.1.       Premium. Concurrently with such prepayment, Borrower shall pay all accrued and unpaid interest under this Note (whether or not then due), all amounts then due under this Note and each of the Security Instruments and a prepayment premium equal to the following:

(1) A prepayment premium equal to two percent (2%) of the amount prepaid for a prepayment on or before September 5, 2018; and

(2) A prepayment premium equal to one percent (1%) of the amount prepaid for prepayments from and including September 6, 2018 through and including September 5, 2019; with no prepayment premium thereafter.

B.       EXCLUSIVE RIGHTS. BORROWER ACKNOWLEDGES AND AGREES THAT BORROWER HAS NO RIGHTS OF PREPAYMENT OF THIS NOTE, EXCEPT AS PROVIDED ABOVE; AND BORROWER FURTHER AGREES THAT, IF THE MATURITY OF THIS NOTE IS ACCELERATED BY LENDER BY REASON OF THE EXISTENCE AND CONTINUANCE OF AN EVENT OF DEFAULT AND BORROWER OR ANY THIRD PERSON THEREAFTER SEEKS TO PAY SUCH ACCELERATED INDEBTEDNESS OR PURCHASE ANY OR ALL THE PROPERTIES (INDIVIDUALLY, A “PROPERTY”, AND COLLECTIVELY, THE “PROPERTIES”) ENCUMBERED BY THE SECURITY INSTRUMENTS SECURING THIS NOTE AT FORECLOSURE SALE, SUCH PAYOFF OR PURCHASE SHALL CONSTITUTE A PREPAYMENT OF PRINCIPAL HEREUNDER AND A PREMIUM SHALL BE PAYABLE IN AN AMOUNT WHICH SHALL BE COMPUTED PURSUANT TO THIS SECTION 7 (INCLUDING THE PREPAYMENT PREMIUM).

3   Promissory Note

8.Costs. Borrower promises to pay to Lender, within five (5) business days after written notice from Lender, all out-of-pocket costs, expenses, disbursements, property taxes, escrow fees, title charges and legal fees and expenses actually incurred by Lender or its counsel (which must be reasonable provided no Event of Default has occurred and is existing) in the negotiation, funding, enforcement or attempted enforcement, by foreclosure or otherwise, of this Note or any of the Security Instruments. Without limitation on the foregoing, Borrower agrees to pay all out-of-pocket costs of collection, including attorneys’ fees and costs (whether or not for salaried attorneys regularly employed by Lender) and all costs of any action or proceeding (including any bankruptcy proceeding or any non-judicial foreclosure or private sale) actually incurred by Lender, in the event any payment is not paid when due, or in case it becomes necessary to enforce any other obligation of Borrower hereunder or to protect the security for the indebtedness evidenced hereby, or for the foreclosure by Lender of any of the Security Instruments, or in the event Lender is made a party to any litigation because of the existence of the indebtedness evidenced by this Note, or because of the existence of any of the Security Instruments. All such costs are secured by the Security Instruments. The obligation of Borrower to repay all such out-of-pocket costs and any other advances by Lender are secured by the Security Instruments and shall be deemed to be evidenced by this Note and shall accrue interest at the Contract Rate or the Past Due Rate, whichever is then applicable.

9.Waivers. Borrower hereby waives diligence, presentment, protest and demand, notice of protest, of demand, of nonpayment, of dishonor and of maturity and agrees that time is of the essence of every provision hereof; and further agrees that any such renewal, extension or modification, or the release or substitution of any person or security for the indebtedness evidenced hereby, shall not affect the liability of any of such parties for the indebtedness evidenced by this Note or the obligations under any of the Security Instruments. Any such renewals, extensions, modifications, releases or substitutions may be made without notice to any of such parties.

10.Remedies Cumulative. The rights and remedies of Lender as provided in this Note and in each of the Security Instruments shall be cumulative and concurrent and may be pursued singly, successively or together against Borrower, any of the Properties, or any other persons or entities who are, or may become liable for all or any part of this indebtedness, and any other funds, property or security held by Lender for the payment hereof, or otherwise, at the sole discretion of Lender. Failure to exercise any such right or remedy shall in no event be construed as a waiver or release of such rights or remedies, or the right to exercise them at any later time. The right, if any, of Borrower, and all other persons or entities, who are, or may become, liable for this indebtedness, to plead any and all statutes of limitation as a defense is expressly waived by each and all of such parties to the full extent permissible by law.

11.Security Instrument Provisions Regarding Transfers; Successors. Each of the Security Instruments securing this Note contains provisions for the acceleration of the indebtedness evidenced hereby upon a “Transfer” (as therein defined). Subject to the limitations on Transfer specified in each of the Security Instruments, the provisions hereof shall be binding on the heirs, legal representatives, successors and assigns of Borrower and shall inure to the benefit of Lender and the successors and assigns of Lender.

4   Promissory Note

12.Partial Release. Notwithstanding anything herein to the contrary contained in this Note, Lender shall consent to a partial prepayment of the principal of this Note and thereafter causing a release from the lien of the applicable Security Instrument any applicable Property, such Property to be released, the “Released Property”, but only upon the satisfaction of all of the following conditions:

a.       Lender shall have received from Borrower at least thirty (30) days' prior written notice of the date proposed for such release (the “Release Date”) and the identification of the Released Property;

b.       No Event of Default in any of the Security Instruments shall have occurred and be continuing as of the date of such notice and the Release Date and no event or condition shall exist that, with the passage of time or giving of notice, would constitute an Event of Default in any of the Security Instruments;

c.       The release shall occur contemporaneously with the sale of the Released Property pursuant to an arm's-length, bona fide contract to a person who is not an affiliate of Borrower or any person or entity with any interest in Borrower, whether direct or indirect;

d.       Borrower shall pay to Lender on the Release Date an amount equal to the “Release Price” amount as indicated for such Released Property on Exhibit “A” attached to this Note (the “Release Price”). The Release Price shall be applied to the Loan to outstanding principal balance of the Loan (unless an Event of Default exists, in which event, amounts may be applied in such order as determined by Lender, including the applicable prepayment premium);

e.       Borrower shall have provided Lender with evidence reasonably acceptable to Lender that the Released Property has been formally designated as a distinct tax lot separate from the remaining Properties;

f.       Borrower shall have provided Lender with evidence reasonably acceptable to Lender that the Released Property and the remaining portion of the Properties shall be legal lots or parcels in material compliance with the all Tennessee subdivision acts and local ordinances thereunder and that the remaining portion of the Property has adequate ingress and egress;

g.       If requested by Lender, Borrower, at its sole cost and expense, shall have delivered to Lender a title endorsement to the mortgagee policy of title insurance delivered to Lender on the date hereof in connection with the Security Instruments insuring that, after giving effect to such release, such title policy coverage has not been terminated or reduced by such releases; and

5   Promissory Note

h.       Borrower shall have paid all of Lender's reasonable out-of-pocket costs and expenses actually incurred by Lender, including, without limitation, attorneys' fees and expenses, in connection with the release of the Released Property.

Upon payment of the Release Price and the satisfaction of the other conditions set forth in this Section 12 for the release of the Released Property, the security interests and liens of Lender under the applicable Security Instrument shall be released from the Released Property, and Lender will execute and deliver, at Borrower’s sole cost and expense, any agreements reasonably requested by Borrower to release and terminate the lien of the applicable Security Instrument as to the Released Property; provided, however, that such release and termination shall be without recourse to Lender and made without any representation or warranty, but, in any event, in standard form that should be reasonably sufficient to remove the lien of the Security Instruments as an exception on the purchaser’s owner’s title insurance policy for the Released Property. Upon the release and termination of Lender's security interests and liens under the applicable Security Instrument and the other Loan Documents relating to the Released Property, all references in the applicable Security Instrument and the other Loan Documents relating to the Released Property shall be deemed deleted, except as otherwise provided herein with respect to indemnities.

13.Miscellaneous.

13.1Manner of Payment; No Offsets. All payments due hereunder shall be made in lawful money of the United States of America. Such payments shall be made by check or, upon maturity and otherwise at the option of Lender, by transferring the payment in federal or immediately available funds by bank wire or interbank transfer for the account of Lender without presentment or surrender of this Note, provided; however, that any payment of principal or interest received after 5:00 p.m. Pacific time shall be deemed to have been received by Lender on the next business day and shall bear interest accordingly. All sums due hereunder shall be payable without offset, demand, abatement or counter-claim of any kind or nature whatsoever, all of which are hereby waived by Borrower.

13.2Fee for Statement. For any statement regarding the obligations evidenced hereby to be furnished by Lender, Borrower shall pay the fee then charged by Lender therefor, not to exceed, however, the maximum fee, if any, allowed by law to be charged by Lender at the time such statement is requested.

13.3No Amendment or Waiver Except in Writing. This Note may be amended or modified only by a writing duly executed by Borrower and Lender, which expressly refers to this Note and the intent of the parties so to amend this Note. No provision of this Note will be deemed waived by Lender, unless waived in a writing executed by Lender, which expressly refers to this Note, and no such waiver shall be implied from any act or conduct of Lender, or any omission by Lender to take action with respect to any provision of this Note or any of the Security Instruments. No such express written waiver shall affect any other provision of this Note, or cover any default or time period or event, other than the matter as to which an express written waiver has been given. Without limitation, acceptance of any partial payment shall not constitute a waiver of any of Lender’s rights, including the right to insist on immediate payment of all amounts due and payable.

6   Promissory Note

13.4No Intent of Usury. None of the terms and provisions contained in this Note, or in any of the Security Instruments, or in other documents or instruments related hereto, shall ever be construed to create a contract for the use, forbearance or detention of money requiring payment of interest or any other consideration that constitutes interest under applicable law, as the case may be, at a rate in excess of the maximum interest permitted to be charged by applicable laws or regulation governing this Note (“Usury Laws”). Borrower shall never be required to pay interest or any other consideration that constitutes interest under applicable law, as the case may be, on this Note in excess of the maximum interest that may be lawfully charged under such Usury Laws, as made applicable by the final judgment of a court of competent jurisdiction, and the provisions of this Section shall control over all other provisions hereof and of any other instrument executed in connection herewith or executed to secure the indebtedness evidenced hereby, which may be in apparent conflict with this Section. If Lender collects monies which are deemed to constitute interest which would otherwise increase the effective interest rate on this Note to a rate in excess of that permitted to be charged by such Usury Laws, all such sums deemed to constitute interest in excess of the maximum rate shall, at the option of Lender, either be credited to the payment of principal or returned to Borrower.

13.5Governing Law. This Note shall be governed by and construed and enforced in accordance with the laws of the State of Tennessee (without regard to conflicts of laws), except where federal law is applicable (including, without limitation, any applicable federal usury ceiling or other federal law preempting state usury laws).

13.6Certain Rules of Construction. The headings of each Section of this Note are for convenience only and do not define or limit any provision of this Note. The provisions of this Note shall be construed as a whole according to their common meaning, not strictly for or against any party, or any person or entity, who is or may become liable for the payment of this Note, and to achieve the objectives of the parties unconditionally to impose on Borrower the indebtedness evidenced by this Note. Whenever the words “including”, “includes” or “include” are used in this Note (including any Exhibit hereto), they shall be read non-exclusively as though the phrase “, without limitation,” immediately followed the same.

13.7Severability. If any term of this Note, or the application thereof to any person or circumstances, shall be invalid or unenforceable, the remainder of this Note, or the application of such term to persons or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each term of this Note shall be valid and enforceable to the fullest extent permitted by law.

7   Promissory Note

13.8Notices. Any notice which a party is required or may desire to give the other shall be in writing and may be sent by personal delivery or by mail (either [i] by United States registered or certified mail, return receipt requested, postage prepaid, or [ii] by Federal Express or similar generally recognized overnight carrier regularly providing proof of delivery), addressed as follows (subject to the right of a party to designate a different address for itself by notice similarly given at least 15 days in advance):

To Lender:

Silvergate Bank
4250 Executive Square
Suite 300
La Jolla, California 92037-1492
Attention: Commercial RE Group

To Borrower:

Reven Housing Tennessee, LLC

875 Prospect Street

Suite 304

La Jolla, California 92037

Attention: Thad Meyer

Any notice so given by mail shall be deemed to have been given as of the date of delivery (whether accepted or refused) established by U.S. Post Office return receipt or the overnight carrier’s proof of delivery, as the case may be. Any such notice not so given shall be deemed given upon receipt of the same by the party to whom the same is to be given.

14.Lender Assignment. Lender may assign, sell or transfer at any time this Note (and any documents relating thereto and any interest therein).

TO THE MAXIMUM EXTENT PERMITTED BY LAW, BORROWER AND LENDER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS NOTE, THE LOAN, OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENT (WHETHER VERBAL OR WRITTEN) OR ACTION OF BORROWER OR LENDER OR ANY EXERCISE BY ANY PARTY OF THEIR RESPECTIVE RIGHTS UNDER THE LOAN DOCUMENTS OR IN ANY WAY RELATING TO THE LOAN OR ANY OF THE PROPERTIES OR THIS NOTE. THIS WAIVER IS A MATERIAL INDUCEMENT FOR LENDER TO MAKE THE LOAN TO BORROWER.

8   Promissory Note

IN WITNESS WHEREOF, this Note is executed as of the date first written above.

“BORROWER”
REVEN HOUSING TENNESSEE, LLC,
a Delaware limited liability company
By:	Reven Housing REIT OP, LLC,
	a Delaware limited liability company,
	its Sole Member
	By:
		Thad Meyer
		Chief Financial Officer

Promissory Note

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO

EXCHANGE ACT RULES 13a-14(a) AND 15d-14(a),

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Chad M. Carpenter, certify that:

1.     I have reviewed this quarterly report on Form 10-Q of Reven Housing REIT, Inc.

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 9, 2017

/s/ Chad M. Carpenter

Chad M. Carpenter,

Chief Executive Officer

(Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO

EXCHANGE ACT RULES 13a-14(a) AND 15d-14(a),

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Thad L. Meyer, certify that:

1.     I have reviewed this quarterly report on Form 10-Q of Reven Housing REIT, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 9, 2017

/s/ THAD L. MEYER

Thad L. Meyer,

Chief Financial Officer

(Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATIONS OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

I, Chad M. Carpenter, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of Reven Housing REIT, Inc. for the quarterly period ended September 30, 2017, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Reven Housing REIT, Inc.

November 9, 2017	/s/ Chad M. Carpenter
	Chad M. Carpenter,
	Chief Executive Officer
	(Principal Executive Officer)

I, Thad L. Meyer, certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report on Form 10-Q of Reven Housing REIT, Inc. for the quarterly period ended September 30, 2017, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Reven Housing REIT, Inc.

November 9, 2017	/s/ THAD L. MEYER
	Thad L. Meyer,
	Chief Financial Officer (Principal Financial Officer)

The foregoing certifications are not deemed filed with the Securities and Exchange Commission for purposes of section 18 of the Securities Exchange Act of 1934, as amended (Exchange Act), and are not to be incorporated by reference into any filing of Reven Housing REIT, Inc. under the Securities Act of 1933, as amended, or the Exchange Act, whether made before or after the date hereof, regardless of any general incorporation language in such filing.

XML

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Oct. 31, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Entity Registrant Name	Reven Housing REIT, Inc.
Entity Central Index Key	0001487782
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	RVEN
Entity Common Stock, Shares Outstanding		10,734,025

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Investments in single-family residential properties:
Land	$ 10,429,647	$ 8,579,550
Buildings and improvements	45,612,136	39,419,038
Investments in real estate, gross	56,041,783	47,998,588
Accumulated depreciation	(4,114,171)	(2,853,049)
Investments in single-family residential properties, net	51,927,612	45,145,539
Cash	6,980,464	10,044,977
Rent and other receivables	674,086	246,378
Escrow deposits	32,390	105,500
Lease origination costs, net	363,873	329,395
Deferred stock issuance costs	556,604	0
Other assets, net	1,338,868	195,020
Total Assets	61,873,897	56,066,809
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities	1,475,643	1,283,235
Resident security deposits	679,409	552,698
Notes payable, net	26,904,604	19,454,377
Total Liabilities	29,059,656	21,290,310
Commitments and contingencies (Note 9)
Stockholders' Equity
Preferred stock, $.001 par value; 25,000,000 shares authorized; No shares issued or outstanding	0	0
Common stock, $.001 par value; 100,000,000 shares authorized; 10,734,025 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively	10,734	10,734
Additional paid-in capital	41,677,465	41,677,465
Accumulated deficit	(8,873,958)	(6,911,700)
Total Stockholders' Equity	32,814,241	34,776,499
Total Liabilities and Stockholders' Equity	$ 61,873,897	$ 56,066,809

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	10,734,025	10,734,025
Common stock, shares outstanding	10,734,025	10,734,025

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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenue:
Rental income	$ 2,043,322	$ 1,381,080	$ 5,814,135	$ 4,153,979
Expenses:
Property operating and maintenance	593,339	406,475	1,694,969	1,207,217
Real estate taxes	346,669	230,165	988,839	658,256
Depreciation and amortization	537,968	326,029	1,458,933	964,953
General and administration	558,074	486,379	1,860,473	1,466,865
Noncash share-based compensation	0	425,000	0	425,000
Acquisition costs	0	18,265	0	76,129
Total expenses	2,036,050	1,892,313	6,003,214	4,798,420
Operating income (loss)	7,272	(511,233)	(189,079)	(644,441)
Other income (expenses):
Casualty loss, net	(978,181)	0	(895,194)	0
Gain on sale of residential property, net	0	0	75,796	0
Other	5,466	496	13,628	805
Interest expense	(342,253)	(260,506)	(967,410)	(775,849)
Total other income (expenses), net	(1,314,968)	(260,010)	(1,773,180)	(775,044)
Net loss	$ (1,307,696)	$ (771,243)	$ (1,962,259)	$ (1,419,485)
Net loss per share
(Basic and fully diluted) (in dollars per share)	$ (0.12)	$ (0.09)	$ (0.18)	$ (0.19)
Weighted average number of common shares outstanding (in shares)	10,734,025	8,245,013	10,734,025	7,441,650

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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash Flows From Operating Activities:
Net loss	$ (1,962,259)	$ (1,419,485)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	1,458,933	964,953
Noncash share-based compensation	0	425,000
Amortization of deferred loan fees	108,117	90,981
Casualty loss, net	895,194	0
Gain on sale of residential properties, net	(75,796)	0
Changes in operating assets and liabilities:
Rent and other receivables	(427,708)	(5,872)
Other assets	6,152	(44,734)
Accounts payable and accrued liabilities	192,408	(99,689)
Resident security deposits	126,711	3,925
Net cash provided by (used in) operating activities	321,752	(84,921)
Cash Flows From Investing Activities:
Acquisitions of single-family residential properties	(10,117,039)	0
Capital improvements for single-family residential properties	(668,268)	(364,823)
Proceeds from disposition of single-family residential property	205,027	0
Insurance proceeds received for property damages	554,806	0
Lease origination costs	(219,407)	(76,080)
Escrow deposits	73,110	51,401
Net cash used in investing activities	(10,171,771)	(389,502)
Cash Flows From Financing Activities:
Proceeds from issuance of shares	0	15,415,100
Proceeds from note payable	7,968,633	0
Payments of notes payable	(405,750)	(27,056)
Payment of loan fees	(220,773)	0
Payments of deferred stock issuance costs	(556,604)	(971,716)
Net cash provided by financing activities	6,785,506	14,416,328
Net (Decrease) Increase In Cash	(3,064,513)	13,941,905
Cash at the Beginning of the Period	10,044,977	2,140,298
Cash at the End of the Period	6,980,464	16,082,203
Supplemental Disclosure:
Cash paid for interest	$ 837,127	$ 685,544

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ORGANIZATION AND OPERATION

9 Months Ended

Sep. 30, 2017

Organization And Operation [Abstract]

Nature of Operations [Text Block]

NOTE 1. ORGANIZATION AND OPERATION

Reven Housing REIT, Inc. is a Maryland corporation (Reven Housing REIT, Inc., which along with its wholly-owned subsidiaries, are also referred to herein collectively as the “Company”) which acquires portfolios of occupied and rented single-family residential properties throughout the United States with the objective of receiving income from rental property activity and future profits from the sale of rental property at appreciated values.

As of September 30, 2017, the Company owned 755 single-family homes located in the Houston, Jacksonville, Memphis, Birmingham, and Atlanta metropolitan areas.

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BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block]

NOTE 2. BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”), as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”), and the rules and regulations of the Securities Exchange Commission (“SEC”).

Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the 2016 Annual Report on Form 10-K filed with the SEC on March 24, 2017. The results of operations for the period ended September 30, 2017 are not necessarily indicative of the operating results for the full year.

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Reven Housing REIT OP, L.P., Reven Housing GP, LLC, Reven Housing REIT TRS, LLC, Reven Housing Georgia, LLC, Reven Housing Texas, LLC, Reven Housing Texas 2, LLC, Reven Housing Florida, LLC, Reven Housing Florida 2, LLC, Reven Housing Alabama, LLC and Reven Housing Tennessee, LLC. All significant intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet dates and reported amounts of revenues and expenses for the periods presented. Accordingly, actual results could differ from those estimates.

Financial Instruments

The carrying value of the Company’s financial instruments, as reported in the accompanying consolidated balance sheets, approximates fair value due to their short term nature. The Company’s short term financial instruments consist of cash, rents and other receivables, escrow deposits, accounts payable and accrued liabilities, and resident security deposits.

The carrying value of the Company’s notes payable, as reported in the accompanying consolidated balance sheets, approximates fair value due to the fact that their interest rate, security, and payment terms are similar to other debt instruments currently being issued.

Investments in Single-Family Residential Properties

Prior to January 1, 2017, the Company accounted for its investments in single-family residential properties as business combinations under the guidance of ASC Topic 805, Business Combinations (“ASC 805”) and these acquisitions were recorded at their estimated fair value. The purchase price was allocated to land, building and the existing leases based upon their fair values at the date of acquisition, with acquisition costs expensed as incurred.

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which changed the definition of a business and now requires management to determine whether substantially all of the fair value of gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. When this is the case, the transferred assets and activities are not considered to be a business. This determination is important as the accounting treatment for business combinations and asset acquisitions differs since transactions costs are expensed in a business combination and capitalized in an asset acquisition. The guidance is effective for public companies for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods, with early adoption permitted. The Company adopted this guidance as of January 1, 2017, on a prospective basis, which results in our leased properties no longer meeting the definition of a business. Based on this guidance, our current 2017 acquisitions are treated as asset acquisitions and are recorded at their purchase price, and the purchase price is allocated between land, building, improvements and existing leases based upon their relative fair values at the date of acquisition. The purchase price for purposes of this allocation is inclusive of acquisition costs which typically include legal fees, title fees, property inspection and valuation fees, as well as other closing costs.

Building improvements and buildings are depreciated over estimated useful lives of approximately 10 to 27.5 years, respectively, using the straight-line method. Lease origination costs are amortized over the average remaining term of the in-place leases which is generally less than one year. Maintenance and repair costs are charged to expenses as incurred.

The Company assesses its investments in single-family residential properties for impairment whenever events or changes in business circumstances indicate that carrying amounts of the assets may not be fully recoverable. When such events occur, management determines whether there has been impairment by comparing the asset’s carrying value with its fair value. Should impairment exist, the asset is written down to its estimated fair value. The Company did not recognize any impairment losses for the nine months ended September 30, 2017 and 2016.

Cash

The Company maintains its cash at quality financial institutions. The combined account balances at one or more institutions typically exceed the federal insurance coverage and thus there is a concentration of credit risk related to amounts on deposit in excess of available federal insurance coverage. The Company believes that the risk is not significant, as the Company does not anticipate the financial institutions’ non-performance.

Rents and Other Receivables

Rents and other receivables primarily represent the amount of security deposits and net rental funds which are held by the property managers on behalf of the Company.

Escrow Deposits

Escrow deposits include refundable and non-refundable cash and earnest money on deposit with third parties for future property purchases. However, not all of these properties are certain to be acquired because properties may fall out of escrow through the closing process for various reasons.

Deferred Loan Fees

Costs incurred in the placement of the Company’s notes payable are deferred and amortized using the effective interest method over the term of the respective notes as a component of interest expense on the consolidated statements of operations and presented as an offset to notes payable on the consolidated balance sheets.

Deferred Stock Issuance Costs

Deferred stock issuance costs represent amounts paid for legal, consulting, and other offering expenses in conjunction with the future raising of additional capital to be completed. These costs are netted against additional paid-in capital as a cost of the stock issuance upon closing of the respective stock placement.

Resident Security Deposits

Resident security deposits represent amounts deposited by tenants at the inception of the lease. As of September 30, 2017 and December 31, 2016, the Company had $679,409 and $552,698, respectively, in resident security deposits. Security deposits are refundable, net of any outstanding charges and fees, upon expiration of the underlying lease.

Revenue Recognition

Residential properties are leased to tenants under short term rental agreements of generally one year and revenue is recognized over the lease term on a straight-line basis.

Reclassifications

The Company has reclassified certain prior period amounts to conform to the current period’s presentation.

Income Taxes

The Company intends to elect to be taxed as a real estate investment trust (“REIT”), as defined in the Internal Revenue Code, commencing for the year ending December 31, 2017. Accordingly, the Company does not expect to be subject to federal income tax, provided that it continues to qualify as a REIT and distributions to the stockholders equal or exceed REIT taxable income.

Qualification and taxation as a REIT depends upon the Company’s ability to meet the various qualification tests imposed under the Internal Revenue Code related to the percentage of income that are earned from specified sources, the percentage of assets that fall within specified categories, the diversity of capital stock ownership, and the percentage of earnings that are distributed. Accordingly, no assurance can be given that the Company will be organized or be able to operate in a manner to qualify or remain qualified as a REIT. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal and state income tax (including any applicable alternative minimum tax) on its taxable income at regular corporate tax rates, and the Company may be ineligible to qualify as a REIT for four subsequent tax years. Even if the Company qualifies as a REIT, it may be subject to certain state or local income taxes.

Incentive Compensation Plan

During 2012, the Company established the 2012 Incentive Compensation Plan, which was subsequently amended and restated in December 2013 (“2012 Plan”). The 2012 Plan allows for the grant of options and other awards representing up to 1,650,000 shares of the Company’s common stock. Such awards may be granted to officers, directors, employees, consultants and other persons who provide services to the Company or any related entity. Under the 2012 Plan, options may be granted at an exercise price greater than or equal to the market value at the date of the grant, for owners of 10% or more of the voting shares, at an exercise price of not less than 110% of the market value. Awards are exercisable over a period of time as determined by a committee designated by the Board of Directors, but in no event, longer than ten years.

A total of 496,359 shares have been issued under the 2012 plan as of September 30, 2017.

Net Loss Per Share

Net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company's preferred stock (if any) are not included in the computation if the effect would be anti-dilutive and would increase earnings or decrease loss per share. For the nine months ended September 30, 2017 and 2016, potentially dilutive securities excluded from the calculations were 263,588 shares issuable upon exercise of outstanding warrants granted in prior years.

New Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02, Leases, a new lease standard which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). Under ASU 2016-02, lessor accounting will be substantially similar to the current model, but aligned with certain changes to the lessee model and ASU 2014-09. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The Company’s rental revenue is primarily generated from short-term operating leases. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard is expected to impact the Company’s consolidated financial statements as the Company has an operating office lease arrangement for which it is the lessee. The new standard will be effective for the Company beginning on January 1, 2019, with early adoption permitted. The new standard must be adopted using a modified retrospective transition, requiring application of the new guidance at the beginning of the earliest comparative period presented and provides for certain practical expedients. The Company is currently evaluating the impact on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. The amendments in this ASU include multiple provisions intended to simplify various aspects of the accounting for share-based payments. The guidance will be effective for annual reporting periods beginning after December 15, 2016, and for interim reporting periods within those annual periods, with early adoption permitted. The Company adopted this ASU effective January 1, 2017 and the adoption did not have a material impact on the Company’s consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments, which clarifies how certain cash receipts and cash payments should be presented and classified on the statement of cash flows. The guidance will be effective for annual periods beginning after December 15, 2017 and interim periods within that reporting period. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows, Restricted Cash, which requires the statement of cash flows to explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Thus, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments do not provide a definition of restricted cash or restricted cash equivalents. The guidance will be effective for annual periods beginning after December 15, 2017 and interim periods within that reporting period. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements.

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INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES

9 Months Ended

Sep. 30, 2017

Residential Homes [Abstract]

Residential Homes [Text Block]

NOTE 3. INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES

The following table summarizes the Company’s investments in single-family residential properties. The homes are generally leased to individual tenants under leases with terms of one year or less.

							Investments in
							Single-Family
							Residential
	Number
	of Homes		Land		Buildings and Improvements		Properties, Gross
Total at December 31, 2016		624	$	8,579,550	$	39,419,038	$	47,998,588
Acquisitions		133		1,873,650		8,243,389		10,117,039
Improvements		-		-		668,268		668,268
Sales		(2)		(23,553)		(118,559)		(142,112)
Loss due to property damage		-		-		(2,600,000)		(2,600,000)
Total at September 30, 2017		755	$	10,429,647	$	45,612,136	$	56,041,783

Hurricane Harvey and Hurricane Irma

During the quarter ended September 30, 2017, a significant number of the Company’s properties in Houston, TX and Jacksonville, FL incurred storm related damages from Hurricane Harvey and Hurricane Irma. The Company has estimated the damages to the properties to be approximately $2.6 million and has reduced its carrying value of its homes by that amount. The Company has estimated that approximately $1,650,000 of the damages will be reimbursed in accordance with the Company’s insurance policies. The remaining $950,000 of repair costs represents amounts that will be paid by the Company from its available cash balances and are due to applicable deductible costs and uninsured costs. This amount has been included in casualty losses, net in the statement of operations and has been combined with the results from other minor pre-storm casualty gains and losses.

The Company received approximately $500,000 for Hurricane Harvey and Hurricane Irma related damages from its insurers during the period ended September 30, 2017 and the remaining $1,150,000 expected to be recovered has been included in other assets.

The Company is actively repairing all of its damaged homes in both Houston, TX and Jacksonville, FL and anticipates that all properties will be restored to their original operating condition or better.

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ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

9 Months Ended

Sep. 30, 2017

Accounts Payable and Accrued Liabilities [Abstract]

Accounts Payable and Accrued Liabilities Disclosure [Text Block]

NOTE 4. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

At September 30, 2017 and December 31, 2016, accounts payable and accrued liabilities consisted of the following:

	2017		2016
Accounts payable	$	107,459	$	248,456
Real estate taxes payable		898,590		667,811
Accrued compensation, board fees and other		380,960		300,500
Interest payable		88,634		66,468
	$	1,475,643	$	1,283,235

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NOTES PAYABLE

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Debt Disclosure [Text Block]

NOTE 5. NOTES PAYABLE

On January 31, 2017, Reven Housing Texas 2, LLC, a wholly-owned subsidiary of the Company, received loan proceeds and issued a promissory note in the principal amount of $5,020,000 to a regional bank secured by 97 of the Company’s homes located in Texas. Principal and accrued interest are payable in sixty consecutive monthly installments of $31,759 on the first day of the month until January 31, 2022 when the entire amount of principal and interest remaining unpaid will be payable. Interest accrues and is payable monthly on the loan at the rate equal to four and one-half percent (4.50%) per annum until maturity.

On April 4, 2017, the Company entered into loan modification agreements with the regional bank on four notes mentioned in the summary below whereby the interest rate on all four loans was modified from a rate of 1% over the prime rate to a fixed rate of 4.5% per annum. Principal and interest payments will be made monthly based on a 25 year amortization period with the remaining unpaid principal on all four loans due on April 5, 2020. The loans have a prepayment penalty of 2% during the first year and 1% during the following year on amounts paid in excess of the scheduled amortization. The loans are secured by deeds of trust encumbering homes in each specified area.

On August 1, 2017, Reven Housing Georgia, LLC, a wholly owned subsidiary of the Company, received loan proceeds and issued a promissory note in the principal amount of $1,793,633 to a regional bank secured by the Company’s homes located in Georgia. Interest accrues at a fixed rate of 4.5% and monthly principal and interest payments will be made based on a 25-year amortization period with the remaining unpaid principal due July 5, 2020.

On August 22, 2017, Reven Housing Tennessee, LLC, a wholly owned subsidiary of the Company, received loan proceeds and issued an additional promissory note in the principal amount of $1,155,000 to a regional bank secured by 28 of the Company’s homes located in Tennessee. Interest accrues at a fixed rate of 4.5% and monthly principal and interest payments will be made based on a 25-year amortization period with the remaining unpaid principal due September 5, 2020.

A summary of the Company’s notes payable as of September 30, 2017 and December 31, 2016 is as follows:

	2017		2016		Interest Rate	Maturity Date
Note
Reven Housing Texas, LLC	$	7,353,791	$	7,502,504	4.50%	April, 2020
Reven Housing Texas 2, LLC		4,930,318		-	4.50%	Jan, 2022
Reven Housing Tennessee, LLC		3,852,432		3,908,829	4.50%	April, 2020
Reven Housing Florida, LLC		3,462,437		3,526,794	4.50%	April, 2020
Reven Housing Florida 2, LLC		4,832,383		4,875,898	4.50%	April, 2020
Reven Housing Georgia, LLC		1,790,547		-	4.50%	July, 2020
Reven Housing Tennessee, LLC		1,155,000		-	4.50%	Sept, 2020
		27,376,908		19,814,025
Less deferred loan fees, net		(472,304)		(359,648)
Notes payable, net	$	26,904,604	$	19,454,377

Costs incurred in the placement of the Company’s debt are deferred and amortized using the effective interest method over the term of the loans as a component of interest expense on the consolidated statements of operations. The amount of unamortized fees are deducted from the remaining principal amount owed on the corresponding notes payable. Unamortized deferred loan costs and fees totaled $472,304 and $359,648 as of September 30, 2017 and December 31, 2016, respectively.

During the three months ended September 30, 2017 and 2016, the Company incurred $342,253 and $260,506, respectively, of interest expense related to the notes payable, which includes $39,998 and $30,327, respectively, of amortization of deferred loan fees. During the nine months ended September 30, 2017 and 2016, the Company incurred $967,410 and $775,849, respectively, of interest expense related to the notes payable, which includes $108,117 and $90,981, respectively, of amortization of deferred loan fees.

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STOCKHOLDERS’ EQUITY AND STOCK COMPENSATION

9 Months Ended

Sep. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

NOTE 6. STOCKHOLDERS’ EQUITY AND STOCK COMPENSATION

On October 16, 2014, the Company issued 425,000 shares of the Company’s common stock under the 2012 Plan to certain officers and consultants of the Company. The shares issued are subject to restrictions and future vesting conditions based on the Company reaching certain future milestones. During the year ended December 31, 2016, 106,250 of these shares became vested upon the achievement of certain milestones related to our public offering of common stock in 2016. None of the remaining 318,750 shares were vested as of the issuance date. Compensation expense will be recognized in the applicable future periods on these unvested shares should the applicable milestones be achieved in accordance with the vesting schedule. There is no assurance that these milestones will in fact be achieved and that the shares will in fact vest in the future.

The Company has outstanding warrants that allow holders to purchase up to 263,588 shares at an exercise price of $4.00 per share.  The warrants will expire on September 27, 2018, if not exercised prior to that date.

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INCOME TAXES

9 Months Ended

Sep. 30, 2017

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

NOTE 7. INCOME TAXES

The Company intends to elect REIT status effective for the year ended December 31, 2017. The Company is generally not subject to income taxes assuming it complies with the specific rules applicable to REITs.

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RELATED PARTY TRANSACTIONS

9 Months Ended

Sep. 30, 2017

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

NOTE 8. RELATED PARTY TRANSACTIONS

The Company sub-leased office space on a month-to-month basis from Reven Capital, LLC, which is wholly-owned by Chad M. Carpenter, a shareholder of the Company and its Chief Executive Officer, through January 31, 2016. This arrangement was terminated upon the Company relocating its office space and signing a new lease agreement with an unrelated party. Reven Capital, LLC currently subleases office space from the Company on a month to month basis for a monthly rental of $500.

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COMMITMENTS AND CONTINGENCIES

9 Months Ended

Sep. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies Disclosure [Text Block]

NOTE 9. COMMITMENTS AND CONTINGENCIES

Legal and Regulatory

The Company is subject to potential liability under laws and government regulations and various claims and legal actions arising in the ordinary course of the Company’s business. Liabilities are established for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. The actual costs of resolving legal claims may be substantially higher or lower than the amounts established for those claims. Based on information currently available, management is not aware of any legal or regulatory claims that would have a material effect on the Company’s consolidated financial statements and, therefore, no accrual has been recorded as of the periods ended September 30, 2017 and 2016.

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BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies)

9 Months Ended

Sep. 30, 2017

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The accompanying consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America (“GAAP”), as contained within the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”), and the rules and regulations of the Securities Exchange Commission (“SEC”).

Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been condensed or omitted. It is suggested that these condensed consolidated financial statements be read in conjunction with the consolidated financial statements and notes thereto included in the 2016 Annual Report on Form 10-K filed with the SEC on March 24, 2017. The results of operations for the period ended September 30, 2017 are not necessarily indicative of the operating results for the full year.

Consolidation, Policy [Policy Text Block]

Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Reven Housing REIT OP, L.P., Reven Housing GP, LLC, Reven Housing REIT TRS, LLC, Reven Housing Georgia, LLC, Reven Housing Texas, LLC, Reven Housing Texas 2, LLC, Reven Housing Florida, LLC, Reven Housing Florida 2, LLC, Reven Housing Alabama, LLC and Reven Housing Tennessee, LLC. All significant intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the balance sheet dates and reported amounts of revenues and expenses for the periods presented. Accordingly, actual results could differ from those estimates.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Financial Instruments

The carrying value of the Company’s financial instruments, as reported in the accompanying consolidated balance sheets, approximates fair value due to their short term nature. The Company’s short term financial instruments consist of cash, rents and other receivables, escrow deposits, accounts payable and accrued liabilities, and resident security deposits.

The carrying value of the Company’s notes payable, as reported in the accompanying consolidated balance sheets, approximates fair value due to the fact that their interest rate, security, and payment terms are similar to other debt instruments currently being issued.

Property Acquisitions [Policy Text Block]

Investments in Single-Family Residential Properties

Prior to January 1, 2017, the Company accounted for its investments in single-family residential properties as business combinations under the guidance of ASC Topic 805, Business Combinations (“ASC 805”) and these acquisitions were recorded at their estimated fair value. The purchase price was allocated to land, building and the existing leases based upon their fair values at the date of acquisition, with acquisition costs expensed as incurred.

In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which changed the definition of a business and now requires management to determine whether substantially all of the fair value of gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. When this is the case, the transferred assets and activities are not considered to be a business. This determination is important as the accounting treatment for business combinations and asset acquisitions differs since transactions costs are expensed in a business combination and capitalized in an asset acquisition. The guidance is effective for public companies for annual reporting periods beginning after December 15, 2017, and for interim periods within those annual periods, with early adoption permitted. The Company adopted this guidance as of January 1, 2017, on a prospective basis, which results in our leased properties no longer meeting the definition of a business. Based on this guidance, our current 2017 acquisitions are treated as asset acquisitions and are recorded at their purchase price, and the purchase price is allocated between land, building, improvements and existing leases based upon their relative fair values at the date of acquisition. The purchase price for purposes of this allocation is inclusive of acquisition costs which typically include legal fees, title fees, property inspection and valuation fees, as well as other closing costs.

Building improvements and buildings are depreciated over estimated useful lives of approximately 10 to 27.5 years, respectively, using the straight-line method. Lease origination costs are amortized over the average remaining term of the in-place leases which is generally less than one year. Maintenance and repair costs are charged to expenses as incurred.

The Company assesses its investments in single-family residential properties for impairment whenever events or changes in business circumstances indicate that carrying amounts of the assets may not be fully recoverable. When such events occur, management determines whether there has been impairment by comparing the asset’s carrying value with its fair value. Should impairment exist, the asset is written down to its estimated fair value. The Company did not recognize any impairment losses for the nine months ended September 30, 2017 and 2016.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash

The Company maintains its cash at quality financial institutions. The combined account balances at one or more institutions typically exceed the federal insurance coverage and thus there is a concentration of credit risk related to amounts on deposit in excess of available federal insurance coverage. The Company believes that the risk is not significant, as the Company does not anticipate the financial institutions’ non-performance.

Advances to Property Manager [Policy Text Block]

Rents and Other Receivables

Rents and other receivables primarily represent the amount of security deposits and net rental funds which are held by the property managers on behalf of the Company.

Escrow Deposits And Prepaid Expense [Policy Text Block]

Escrow Deposits

Escrow deposits include refundable and non-refundable cash and earnest money on deposit with third parties for future property purchases. However, not all of these properties are certain to be acquired because properties may fall out of escrow through the closing process for various reasons.

Deferred Loan Fees, Policy [Policy Text Block]

Deferred Loan Fees

Costs incurred in the placement of the Company’s notes payable are deferred and amortized using the effective interest method over the term of the respective notes as a component of interest expense on the consolidated statements of operations and presented as an offset to notes payable on the consolidated balance sheets.

Deferred Stock Issuance Costs [Policy Text Block]

Deferred Stock Issuance Costs

Deferred stock issuance costs represent amounts paid for legal, consulting, and other offering expenses in conjunction with the future raising of additional capital to be completed. These costs are netted against additional paid-in capital as a cost of the stock issuance upon closing of the respective stock placement.

Security Deposits [Policy Text Block]

Resident Security Deposits

Resident security deposits represent amounts deposited by tenants at the inception of the lease. As of September 30, 2017 and December 31, 2016, the Company had $679,409 and $552,698, respectively, in resident security deposits. Security deposits are refundable, net of any outstanding charges and fees, upon expiration of the underlying lease.

Revenue Recognition, Policy [Policy Text Block]

Revenue Recognition

Residential properties are leased to tenants under short term rental agreements of generally one year and revenue is recognized over the lease term on a straight-line basis.

Reclassification, Policy [Policy Text Block]

Reclassifications

The Company has reclassified certain prior period amounts to conform to the current period’s presentation.

Income Tax, Policy [Policy Text Block]

Income Taxes

The Company intends to elect to be taxed as a real estate investment trust (“REIT”), as defined in the Internal Revenue Code, commencing for the year ending December 31, 2017. Accordingly, the Company does not expect to be subject to federal income tax, provided that it continues to qualify as a REIT and distributions to the stockholders equal or exceed REIT taxable income.

Qualification and taxation as a REIT depends upon the Company’s ability to meet the various qualification tests imposed under the Internal Revenue Code related to the percentage of income that are earned from specified sources, the percentage of assets that fall within specified categories, the diversity of capital stock ownership, and the percentage of earnings that are distributed. Accordingly, no assurance can be given that the Company will be organized or be able to operate in a manner to qualify or remain qualified as a REIT. If the Company fails to qualify as a REIT in any taxable year, it will be subject to federal and state income tax (including any applicable alternative minimum tax) on its taxable income at regular corporate tax rates, and the Company may be ineligible to qualify as a REIT for four subsequent tax years. Even if the Company qualifies as a REIT, it may be subject to certain state or local income taxes.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Incentive Compensation Plan

During 2012, the Company established the 2012 Incentive Compensation Plan, which was subsequently amended and restated in December 2013 (“2012 Plan”). The 2012 Plan allows for the grant of options and other awards representing up to 1,650,000 shares of the Company’s common stock. Such awards may be granted to officers, directors, employees, consultants and other persons who provide services to the Company or any related entity. Under the 2012 Plan, options may be granted at an exercise price greater than or equal to the market value at the date of the grant, for owners of 10% or more of the voting shares, at an exercise price of not less than 110% of the market value. Awards are exercisable over a period of time as determined by a committee designated by the Board of Directors, but in no event, longer than ten years.

A total of 496,359 shares have been issued under the 2012 plan as of September 30, 2017.

Earnings Per Share, Policy [Policy Text Block]

Net Loss Per Share

Net loss per share is computed by dividing the net loss by the weighted average number of shares of common stock outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company's preferred stock (if any) are not included in the computation if the effect would be anti-dilutive and would increase earnings or decrease loss per share. For the nine months ended September 30, 2017 and 2016, potentially dilutive securities excluded from the calculations were 263,588 shares issuable upon exercise of outstanding warrants granted in prior years.

New Accounting Pronouncements, Policy [Policy Text Block]

New Accounting Pronouncements

In February 2016, the FASB issued ASU 2016-02, Leases, a new lease standard which sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e. lessees and lessors). Under ASU 2016-02, lessor accounting will be substantially similar to the current model, but aligned with certain changes to the lessee model and ASU 2014-09. The new standard requires lessors to account for leases using an approach that is substantially equivalent to existing guidance for sales-type leases, direct financing leases and operating leases. The Company’s rental revenue is primarily generated from short-term operating leases. The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating based on the principle of whether or not the lease is effectively a financed purchase of the leased asset by the lessee. This classification will determine whether the lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. Leases with a term of 12 months or less will be accounted for similar to existing guidance for operating leases today. The new standard is expected to impact the Company’s consolidated financial statements as the Company has an operating office lease arrangement for which it is the lessee. The new standard will be effective for the Company beginning on January 1, 2019, with early adoption permitted. The new standard must be adopted using a modified retrospective transition, requiring application of the new guidance at the beginning of the earliest comparative period presented and provides for certain practical expedients. The Company is currently evaluating the impact on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting. The amendments in this ASU include multiple provisions intended to simplify various aspects of the accounting for share-based payments. The guidance will be effective for annual reporting periods beginning after December 15, 2016, and for interim reporting periods within those annual periods, with early adoption permitted. The Company adopted this ASU effective January 1, 2017 and the adoption did not have a material impact on the Company’s consolidated financial statements.

In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows, Classification of Certain Cash Receipts and Cash Payments, which clarifies how certain cash receipts and cash payments should be presented and classified on the statement of cash flows. The guidance will be effective for annual periods beginning after December 15, 2017 and interim periods within that reporting period. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements.

In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows, Restricted Cash, which requires the statement of cash flows to explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Thus, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendments do not provide a definition of restricted cash or restricted cash equivalents. The guidance will be effective for annual periods beginning after December 15, 2017 and interim periods within that reporting period. The Company is currently evaluating the impact the adoption of this ASU will have on its consolidated financial statements.

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INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES (Tables)

9 Months Ended

Sep. 30, 2017

Residential Homes [Abstract]

Schedule of Real Estate Properties [Table Text Block]

The homes are generally leased to individual tenants under leases with terms of one year or less.

							Investments in
							Single-Family
							Residential
	Number
	of Homes		Land		Buildings and Improvements		Properties, Gross
Total at December 31, 2016		624	$	8,579,550	$	39,419,038	$	47,998,588
Acquisitions		133		1,873,650		8,243,389		10,117,039
Improvements		-		-		668,268		668,268
Sales		(2)		(23,553)		(118,559)		(142,112)
Loss due to property damage		-		-		(2,600,000)		(2,600,000)
Total at September 30, 2017		755	$	10,429,647	$	45,612,136	$	56,041,783

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ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2017

Accounts Payable and Accrued Liabilities [Abstract]

Schedule of Accrued Liabilities [Table Text Block]

At September 30, 2017 and December 31, 2016, accounts payable and accrued liabilities consisted of the following:

	2017		2016
Accounts payable	$	107,459	$	248,456
Real estate taxes payable		898,590		667,811
Accrued compensation, board fees and other		380,960		300,500
Interest payable		88,634		66,468
	$	1,475,643	$	1,283,235

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NOTES PAYABLE (Tables)

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Schedule of Debt [Table Text Block]

A summary of the Company’s notes payable as of September 30, 2017 and December 31, 2016 is as follows:

	2017		2016		Interest Rate	Maturity Date
Note
Reven Housing Texas, LLC	$	7,353,791	$	7,502,504	4.50%	April, 2020
Reven Housing Texas 2, LLC		4,930,318		-	4.50%	Jan, 2022
Reven Housing Tennessee, LLC		3,852,432		3,908,829	4.50%	April, 2020
Reven Housing Florida, LLC		3,462,437		3,526,794	4.50%	April, 2020
Reven Housing Florida 2, LLC		4,832,383		4,875,898	4.50%	April, 2020
Reven Housing Georgia, LLC		1,790,547		-	4.50%	July, 2020
Reven Housing Tennessee, LLC		1,155,000		-	4.50%	Sept, 2020
		27,376,908		19,814,025
Less deferred loan fees, net		(472,304)		(359,648)
Notes payable, net	$	26,904,604	$	19,454,377

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BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Dec. 31, 2012
Accounting Policies [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	263,588	552,698
Security Deposit	$ 679,409		$ 552,698
Buildings and Improvements [Member] | Minimum [Member]
Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life	10 years
Buildings and Improvements [Member] | Maximum [Member]
Accounting Policies [Line Items]
Property, Plant and Equipment, Useful Life	27 years 6 months
Incentive Compensation Plan 2012 [Member]
Accounting Policies [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized				1,650,000
Share-based Compensation Arrangement by Share-based Payment Award, Description	Under the 2012 Plan, options may be granted at an exercise price greater than or equal to the market value at the date of the grant, for owners of 10% or more of the voting shares, at an exercise price of not less than 110% of the market value. Awards are exercisable over a period of time as determined by a committee designated by the Board of Directors, but in no event, longer than ten years.
Stock Issued During Period, Shares, Share-based Compensation, Gross	496,359

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INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES (Details)	9 Months Ended
	Sep. 30, 2017 USD ($) Number	Dec. 31, 2016 Number
RESIDENTIAL HOMES, NET [Line Items]
Number of Homes | Number	755	624
Acquisitions
RESIDENTIAL HOMES, NET [Line Items]
Number of Homes | Number	133
Improvements
RESIDENTIAL HOMES, NET [Line Items]
Number of Homes | Number	0
Sales
RESIDENTIAL HOMES, NET [Line Items]
Number of Homes | Number	(2)
Loss due to property damage
RESIDENTIAL HOMES, NET [Line Items]
Number of Homes | Number	0
Land
RESIDENTIAL HOMES, NET [Line Items]
Property Plant and Equipment at Beginning	$ 8,579,550
Property Plant and Equipment, Acquisitions	1,873,650
Property Plant And Equipment, Improvements	0
Property, Plant and Equipment, Sales	(23,553)
Property Plant And Equipment, Loss due to property damage	0
Property Plant and Equipment at Ending	10,429,647
Buildings and Improvements
RESIDENTIAL HOMES, NET [Line Items]
Property Plant and Equipment at Beginning	39,419,038
Property Plant and Equipment, Acquisitions	8,243,389
Property Plant And Equipment, Improvements	668,268
Property, Plant and Equipment, Sales	(118,559)
Property Plant And Equipment, Loss due to property damage	(2,600,000)
Property Plant and Equipment at Ending	45,612,136
Investments In Single-Family Residential Properties [Member]
RESIDENTIAL HOMES, NET [Line Items]
Property Plant and Equipment at Beginning	47,998,588
Property Plant and Equipment, Acquisitions	10,117,039
Property Plant And Equipment, Improvements	668,268
Property, Plant and Equipment, Sales	(142,112)
Property Plant And Equipment, Loss due to property damage	(2,600,000)
Property Plant and Equipment at Ending	$ 56,041,783

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INVESTMENTS IN SINGLE-FAMILY RESIDENTIAL PROPERTIES (Details Textual) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Loss from Catastrophes	$ 978,181	$ 0	$ 895,194	$ 0
Proceeds from Insurance Settlement, Investing Activities			554,806	$ 0
Uninsured Risk [Member]
Insurance Settlements Receivable	1,150,000		1,150,000
Hurricane [Member]
Liability for Catastrophe Claims, Carrying Amount	2,600,000		2,600,000
Proceeds from Insurance Settlement, Investing Activities			500,000
Hurricane [Member] | Uninsured Risk [Member]
Insurance Settlements Receivable	1,650,000		$ 1,650,000
Loss from Catastrophes	$ 950,000

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ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Details) - USD ($)	Sep. 30, 2017	Dec. 31, 2016
Accounts Payable And Accrued Expenses [Line Items]
Accounts payable	$ 107,459	$ 248,456
Real estate taxes payable	898,590	667,811
Accrued compensation, board fees and other	380,960	300,500
Interest payable	88,634	66,468
Accounts payable and accrued liabilities	$ 1,475,643	$ 1,283,235

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NOTES PAYABLE (Details) - USD ($)		1 Months Ended	9 Months Ended
	Aug. 01, 2017	Aug. 22, 2017	Sep. 30, 2017	Dec. 31, 2016
Note
Notes payable, net			$ 26,904,604	$ 19,454,377
Notes Payable to Banks [Member]
Note
Long-term Debt, Gross			27,376,908	19,814,025
Less deferred loan fees, net			(472,304)	(359,648)
Notes payable, net			26,904,604	19,454,377
Reven Housing Texas, LLC [Member] | Notes Payable to Banks [Member]
Note
Long-term Debt, Gross			$ 7,353,791	7,502,504
Debt Instrument, Maturity Date			Apr. 30, 2020
Debt Instrument, Interest Rate, Stated Percentage			4.50%
Reven Housing Texas 2 LLC [Member] | Notes Payable to Banks [Member]
Note
Long-term Debt, Gross			$ 4,930,318	0
Debt Instrument, Maturity Date			Jan. 31, 2022
Debt Instrument, Interest Rate, Stated Percentage			4.50%
Reven Housing Tennessee, LLC [Member] | Notes Payable to Banks [Member]
Note
Long-term Debt, Gross			$ 3,852,432	3,908,829
Debt Instrument, Maturity Date			Apr. 30, 2020
Debt Instrument, Interest Rate, Stated Percentage			4.50%
Reven Housing Florida, LLC [Member] | Notes Payable to Banks [Member]
Note
Long-term Debt, Gross			$ 3,462,437	3,526,794
Debt Instrument, Maturity Date			Apr. 30, 2020
Debt Instrument, Interest Rate, Stated Percentage			4.50%
Reven Housing Florida 2, LLC [Member] | Notes Payable to Banks [Member]
Note
Long-term Debt, Gross			$ 4,832,383	4,875,898
Debt Instrument, Maturity Date			Apr. 30, 2020
Debt Instrument, Interest Rate, Stated Percentage			4.50%
Reven Housing Georgia, LLC [Member] | Notes Payable to Banks [Member]
Note
Long-term Debt, Gross			$ 1,790,547	0
Debt Instrument, Maturity Date	Jul. 05, 2020		Jul. 31, 2020
Debt Instrument, Interest Rate, Stated Percentage	4.50%		4.50%
Reven Housing Tennessee 2, LLC [Member] | Notes Payable to Banks [Member]
Note
Long-term Debt, Gross			$ 1,155,000	$ 0
Debt Instrument, Maturity Date		Sep. 05, 2020	Sep. 30, 2020
Debt Instrument, Interest Rate, Stated Percentage		4.50%	4.50%

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NOTES PAYABLE (Details Textual) - USD ($)			1 Months Ended		3 Months Ended		9 Months Ended
	Aug. 01, 2017	Apr. 04, 2017	Aug. 22, 2017	Jan. 31, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Notes Payable [Line Items]
Interest Expense, Debt					$ 342,253	$ 260,506	$ 967,410	$ 775,849
Amortization of Financing Costs					39,998	$ 30,327	108,117	90,981
Proceeds From Notes Payable							7,968,633	$ 0
Notes Payable to Banks [Member]
Notes Payable [Line Items]
Debt Issuance Costs, Net					$ 472,304		$ 472,304		$ 359,648
Notes Payable [Member]
Notes Payable [Line Items]
Debt Instrument, Maturity Date		Apr. 05, 2020
Debt Instrument, Interest Rate Terms		rate of 1% over the prime rate to a fixed rate of 4.5% per annum.
Debt Instrument, Periodic Payment, Total				$ 31,759
Prepayment Penalty Percentage For Following Years		1.00%
Prepayment Penalty Percentage First Year		2.00%
Debt Instrument, Term		25 years
Promissory Note [Member]
Notes Payable [Line Items]
Debt Instrument, Interest Rate, Stated Percentage				4.50%
Debt Instrument, Face Amount				$ 5,020,000
Reven Housing Georgia, LLC [Member] | Notes Payable to Banks [Member]
Notes Payable [Line Items]
Debt Instrument, Maturity Date	Jul. 05, 2020						Jul. 31, 2020
Debt Instrument, Interest Rate, Stated Percentage	4.50%				4.50%		4.50%
Debt Instrument, Term	25 years
Proceeds From Notes Payable	$ 1,793,633
Reven Housing Tennessee 2, LLC [Member] | Notes Payable to Banks [Member]
Notes Payable [Line Items]
Debt Instrument, Maturity Date			Sep. 05, 2020				Sep. 30, 2020
Debt Instrument, Interest Rate, Stated Percentage			4.50%		4.50%		4.50%
Debt Instrument, Term			25 years
Proceeds From Notes Payable			$ 1,155,000

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STOCKHOLDERS' EQUITY AND STOCK COMPENSATION (Details Textual) - $ / shares	1 Months Ended	9 Months Ended	12 Months Ended
	Oct. 16, 2014	Sep. 30, 2017	Dec. 31, 2016
Incentive Compensation Plan 2012 [Member]
STOCKHOLDERS’ EQUITY AND STOCK COMPENSATION [Line Items]
Stock Issued During Period, Shares, Issued for Services	425,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares			106,250
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares		318,750
Private Placement [Member]
STOCKHOLDERS’ EQUITY AND STOCK COMPENSATION [Line Items]
Warrants To Purchase Common Stock		263,588
Share Price		$ 4.00
Investment Warrants Expiration Date		Sep. 27, 2018

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RELATED PARTY TRANSACTIONS (Details Textual)	9 Months Ended
	Sep. 30, 2017 USD ($)
Related Party Transaction [Line Items]
Operating Leases, Rent Expense	$ 500